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Illustrator: Shao-Ming, Lu/ Employee of CPT

CPT values, respects and cares about our employees and considers them one of our most

important assets. As such, CPT has been dedicated to creating a workplace environment that

is filled with passion, care, learning opportunities, and innovative ideas. We strive to create

an environment in which our employees may excel and exert their full potential, and we offer

employees reasonable and competitive remuneration and welfares. In addition, we provide all

employees with comprehensive training and development programs to continuously help them

enhance their professional competency and pursue self-development.

Establish LOHAS Working Environment and Voluntary Environmental Conservation

Protection of Human Rights

Employee Health Management

Training and Attracting Talents

UOccupational Hazard Prevention

Stakeholders’ Voice

Caring for Employees

55

Company Profile

Management ofSustainability Issues

Reducing Energy and Resources Consumption, Develop Environmentally Friendly Products

Provid High Quality Green Products, Winning

Customer RecognitionEncourage Suppliers’ Green Management and Green Services

Establish LOHAS Working Environment and

Voluntary Environmental ConservationWork with Employees to Care for Neighboring Community and Establish Green Image

Global Employee Analysis

CPT was founded in 1971. We are proud to be a manufacturer of specialist display products. As at December 31, 2010, CPT had a total of 22,708 employees worldwide, an increase of close to 3,000 employees comparing to 19,784 employees as at December 31, 2009. CPT’s production plants in Taiwan had a total of 7,924 employees, while production plants in China and Malaysia together employed around 14,859 people. The company recruits employees locally. Up to 85.91% of total employees of our production plants in Taiwan are of ROC nationality, while 14.09% are aliens. Up to 99% of employees of the China and Malaysia production plants are locals. The percentage of local employees serving managerial positions are as follows: 99.71% for production plants in Taiwan, 91.36% for the Malaysia plants and 57.66% for the China plants.

In this knowledge-driven economy, CPT recognizes the importance of human resources to support the company’s sustainable management and is continuously dedicated to improving the quality of our employees. Based on the analysis of employees as at December 31, 2010, 4.4% of CPT’s employees were master degree qualified, while 31% held tertiary qualification.

CPT attaches importance to employee welfares and development. We are constantly seeking young graduates to join our team to ensure that we stay as a vibrant and energetic company. As at December 31, 2010, the average age of CPT’s employees was 28 years old; 71% of employees were aged 30 years old or under and 29% were aged over 30 years old.

As at December 31, 2010, 37% of CPT’s employees were females and 63% were males. All employees share equal career development opportunities regardless of their age and gender.

Composition of CPT’s employees worldwide by gender

63% males

37% females

71% aged under 30

29% aged30 or above

Percentage of Full-time Employees

Composition of CPT’semployees worldwide by age

Staff Turnover

22.12%17.82% 9.91%

58.39%

116.88%

71.84%87.04%

15.89%

54.75%

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Protection of Human Rights

According to CPT’s recruitment policy, the company does not discriminate candidates by race, social class, language, thinking, religion, political party, nationality, gender, marital status, appearance, features, mental or physical disabilities, birth place, sexual inclination, age or past membership with an union. There is no gender discrimination in our wage system. All employees enjoy equally fair promotion opportunities.

Corporate Social Responsibility Report5�

Compliance with EICC

Ever since adoption of the EICC system, CPT’s production plants have been duly adhering to the EICC standards. EICC training is compulsory for all new employees, and so far, all have received EICC training. During the period between 2009 and 2010, all production plants were subjected to verification by SGS (Taiwan). Many areas were identified as needing improvements and the company has since taken corrective actions to address the issues raised. We hope that all production plants are able to uphold the spirit of the EICC by conducting training and making constructive improvements to establish a safe workplace environment and employee-first culture, respect employees’ welfares and enhance communications with employees.

CPT has put in place clear measures to prohibit the use of child labor. Candidates that satisfy the company’s recruitment criteria will be notified to attend an interview with the departmental supervisor. Candidates who are successful in the interview selection process will be subjected to further confirmations of specific employment conditions such salaries and age where required, in accordance with the company’s human resources policy.

CPT recruits employees on the basis of the voluntary principle, which means that any employee has the right to vacate his or her position provided that he or she gives the company a reasonable period of advance notice of such intention in advance. The company does not request employee to hand in his or her identify documents such as the National Identification Card or passport or any form of “bond” as part of the employment criteria. CPT undertakes not to use any cruel or inhuman policy to manage our employees, including imposing any form of harassment, abuse, physical punishment, mental or physical stress, or verbal abuse. CPT’s offers above-average remuneration to employees at all our business locations. Employees are entitled to receive overtime payments in accordance with national regulations.

CPT has instituted a designated suggestion box to receive feedbacks from employments. Any employee who feels that his or her right is impaired may submit a claim in writing or by other means, which upon submission, will be handled and investigated accordingly by the relevant department. The

company has also put in place anti-harassment measures and complaint lodgment avenues to protect employees from sexual harassments at work.

Human rights considerations are incorporated as part of the training program of security staffs at our global production plants. Besides reinforcing staff training on legal requirements and company regulations, emergency rehearsals and promotion of traffic safety, the company also conducts training of the EICC system on all employees to establish employees’ appreciation for human rights.

Labor Unions & Labor Negotiations

Employees of CPT enjoy the freedom of joining the union and the right to participate in group negotiation. Head of the Human Resources Dept. attends union meetings to promote harmony between workers and the company. At present, a labor union, with 60 union representatives, has been formed to represent employees of CPT (Taoyuan). Up to 90% of employees of our Taoyuan Plant are union members. Similarly, Chunghwa Picture Tubes (Wujiang) Ltd., CPT Display Technology (Fujian) Ltd., CPTF Visual Display (Fuzhou) Ltd., CPT TPV Optical (Fujian) Co., Ltd. and CPTF Optronics Co. Ltd. also have legally established labor unions. Although the Malaysian regulations prohibit establishment of a labor union by an electronic company, CPT Malaysia has put in place the Joint Consultant Committee, which convenes a meeting every two months. The Committee meeting is attended by 12 labor representatives, the company’s human resource manager and departmental heads.

External verification of fulfillment of EICC.

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Company Profile







Employee Welfare

CPT values the importance of administering a sound employee welfare system and offers employees competitive remuneration and bonuses, which include meal allowances, performance bonuses, group insurance, and special subsidies for wedding, child birth, funeral and birthday. The company also offers other forms of caring services for our employees including employee accommodation, sports facility, night-shift snacks and shuttle bus services. Employees of our Taiwan operations are also entitled to acquire employee stock options, enjoy a flexible leave policy and female employees are also entitled to maternity leave.

Each of our production plant has a clinic/first aid office attended by a qualified physician and nurses to provide medical consultation or first aid services to employees. Employees have access to on-site professional medical consultation services or emergency treatment. CPT extends this service to families of employees and community residents to fully utilize the available medical resources. On top of all, each of our employees is entitled to a free annual health checkup as their basic entitlement to health benefits.

CPT has built high-standard sports facilities including basketball court, swimming pool, aerobics, badminton court, table tennis room, and gym on premise to encourage employees to get fit during their leisure time. The company also hosts sports carnivals and aerobic events periodically.

The leisure facilities are open to employees, their families and community residents and the company is a proud sponsor of many community events. We also seek out third party liability insurance to offer sufficient protection. In addition to labor insurance required under basic labor insurance regulations, the company has sought out business insurance to plan for a comprehensive welfare and pension support system, making it possible for us to assume full responsibilities as an employer for worked-related bodily injuries suffered by or death of an employee with the support of the occupational hazard insurance and employer liability insurance. We hope to establish an occupational hazard pension support system that offers better economic benefits and medical care. The bigger-picture benefits are avoidance of labor disputes and waste of social resources.

Health Care

CPT regards employees as our most important assets. We organize employees to undergo the annual health checkup, which covers a more extensive list of checkup items than those required by law. The company has instituted breast-feeding rooms on premise to offer female employees a comfortable, private and independent space when the need arises.

CPT seeks to help each employee look after his or her own health. The company’s kitchen offers a diverse selection of food to ensure that our employees keep a healthy diet. The company’s kitchen promotes reduced-salt, reduced-oil and reduced-sugar diet and encourages employees to consume less red meat and more vegetarian food. The corporate dietician is responsible for monitoring the calorie level of each meal in the weekly menu. The company also invites health experts from time to time to conduct health workshops.

Major health events in Taiwan during 2010 were as follows:1. Promotion of low-carbon diet: In response to the “SHE

CARES” Initiative adopted by the Taiwan Business Council for Sustainable Development in 2010 to promote a healthy, low carbon and happy lifestyle, CPT has signed up to carry out the “1Action.” We started with introducing the “non-red meat day of the month” at our production plants in Taiwan to encourage daily intake of more healthy vegetables and less red meat. The company’s kitchen does not provide red meat on the event day.

2. Fitness exercise: The company engaged the Institute of Occupational Medicine and Industrial Hygiene of the National Taiwan University to design a fitness program

CPT has signed up to the “1 Action”and introduced the “non-red meat day of the month.”

Employee Health

Management

The high-tech industry has been under social scrutiny and subjected to much criticism last year due to constant reporting of excess overtime or human right issues in some firms. In light of this, CPT has taken extra care to ensure employees’ mental and physical wellbeing. We engage in constant dialogues with employees to understand their true needs. On the other hand, we adopt a sound employee health management policy because we believe that employee productivity is dependant on good health, which is critical to support the company’s competitive strength.

Corporate Social Responsibility Report58

for employees to release the build-up of tension in their neck and shoulder from maintaining the same posture for a lengthy period of time.

3. Annual health checkup: Offering better health checkup benefits than those required legally. Employee health checkup service was offered on site for those who have reached their first anniversary of employment with the company.

4. Blood donation: Organized 10 rounds of blood-donation events at production plants in Taiwan during 2010. A total of 1,588 people participated in the event.

5. Metabolic syndrome & recommended diet workshop: The first tip to reduce the likelihood of catching this disease is to avoid abdominal obesity and being over weight.

6. Promotion of Liver & Heart Health in Corporate Entities: This was an initiative adopted by the “Advancing Clinical Treatment - Hepatitis B Virus Taiwan Chapter,” to promote liver and heart health in corporate entities. CPT has been actively promoting the initiative at our production plants during 2010, sending out letters to follow up the status of any employee identified as a Hepatitis B Carrier, reminding him or her to undertake a follow-up blood test and abdominal ultrasound. CPT was recognized as a distinguished achiever of the initiative and received a media award on May 13, 2010.

7. How to eat healthily when dinning out: The purpose of the event was to educate employees on the correct dinning-out concepts such as keeping a balanced and nutritious diet. The dietician who ran the workshop gave vivid explanations on ways of maintaining one’s health and little tips for reducing oil intake from food.

8. Liver Care Workshop: Increase employees’ awareness for the disease, and their knowledge of Hepatitis B and liver care and encourage them to seek medical advice in a timely manner to maintain their health.

9. Relationship & pregnancy: Taiwan currently has the lowest fertility rate in the world. Many women are reluctant to have children while some are unable to have children. Infertility, if properly treated, may not be a problem. Up to 90% of the women who received treatment were able to conceive. It is not a dream to have your own children if you seek medical advice in a timely manner.

10. Special suggest ion box and websi te for heal th management: The company has provided a special suggestion box at the employees’ clinic. A dedicated health management consultant was appointed to follow up employees’ health status, and respond to health queries etc.

11. Weight Loss Press Conference organized by the National Health Department: The National Health Department conducted research on corporate employees and found that a high percentage of corporate employees had an over-weight problem or obesity. In an effort to disseminate the importance of health to corporate employees, the Dept. organized a press conference and invited CPT to share its experience in health promotion.

“ACT-HBV Taiwan Chapter” presented awards to distinguished corporations

Move upwards and remember to astringe your belly!

CPT and Department of Health promoting employee health

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Company Profile







The 2010 National Workplace Safety and Health WeekCPT has been actively promoting workplace safety and

health and is dedicated to constructing a comfortable, healthy and safe workplace for our employees. We communicate new anti-disaster concepts with our employees to involve all employees in workplace safety campaigns. The optimal goal is to construct a quality, occupational safety and health culture to accomplish the zero-incident safety target and workplace health. The company emerged as the winner amongst 70 corporate contestants after passing the assessments carried out at the end of 2010, becoming the proud winner of the “Outstanding Award” of the 2010 National Occupational Safety and Health Week Award in the (Group A) category for public and private enterprises.

The 2010 National Occupational Safety and Health Week- Social Contribution Award

CPT’s Cross-Lake Swimming Champion Successfully Swam Across the Shihmen Reservoir

After several years of keen participation in the Sun Moon Lake International Swimming Festival, CPT became more involved in local community events. In 2010, the company summoned some three hundred employees and their family members to participate in the “2010 Shihmen Reservoir Attractions and Easy Travel” event, again becoming the corporate entity with the largest number of participants.Different to what we have done in past years travelling a long distance to Sun Moon Lake, CPT encouraged employees to take part in the nearby Shinmen Reservoir event to save energy, reduce carbon and cut down the travel time. Besides urging employees and their families to take part in cross-reservoir swimming, we have donated souvenirs- “eco-friendly stainless steel soap”- to give away to event participants. The souvenir perfectly fitted in with the theme of the event- conservation of water resources.

Minister Wang of the Council of Labor Affairs praises CPT’s achievements

Corporate Social Responsibility Report�0

Employee: Taoyuan Plant

Ms. Shen-Hui Huang/Officer/Employee

I feel blessed to be a member of the CPT family. Ever since I joined the company in 2006, I have always appreciated the company’s care for and dedication to employees.As a newcomer to the corporate world, I was ignorant of the existence of such a well-run employee welfare policy by a huge corporation of this size. CPT offers reliable and caring welfare services from necessities, and transportation to workplace amenities such as leisure and entertainment. Nutritious and hygienic catering services that look after our health; quality employee accommodation that allows us to work worry free away from home; convenient shuttle bus services resolve all our transportation needs. On top of all these benefits, CPT is genuinely concerned about employees’ health. Besides offering us an annual health checkup to monitor our health condition, the company also organize different types of sports competition or related courses for us to attend. Employees and their family members were highly encouraged to take part in the annual cross-lake swimming and road running events. It feels good to exercise hard with workmates! I am also impressed by the fact that the company offers the Employee Assistance Programs (EAPs). We are assured that a dedicated person can be contacted to resolve any problem we come across whether it be work or life related.

Although I can not take account of all the benefits CPT provides to employees, I am confident to say that CPT is a company that genuinely cares for employees and think in the shoes of employees. I just want to say, how lucky we are to work for a company like CPT!

Employee of CPT Display Technology (Shenzheng) Ltd.

Mr. Shen-Yu Mao, Security Section Leader, Human Resources Dept. Service year: 5 years

I could recall that five years ago, CPT was sitting on a piece of barren land. Thanks to the efforts of the entire team, the corporate building now stands elegantly, and housed the latest production facilities. The corporate spirit of “Perfection, Teamwork and Innovation” has made the company more resilient and stronger! I have gained substantial personal experience and changed a lot during the history of CPT’s developments with the guidance and help from my supervisors and colleagues.I could recall when I first joined the company, I was always at a loss when confronted with an incident. It is highly critical to handle safety incidents appropriately to avoid adverse impacts on the company’s operation. Naturally, the security team bears a great responsibility of ensuring workplace safety. Words of encouragement and guidance from our supervisors and the company’s senior management team always motivated us to work harder to further improve our

professional competency.During weekends or holidays when the plant was shut down, on-call supervisors tirelessly came to the production plant every day to give us guidance in resolving issues at hand. They even went out of their ways by making calls during late night hours to check that everything was under control. We were also excited and highly motivated by these calls. I was fortunate to make the right choice of working for CPT.

Stakeholders’ Voice Employees’ suggestions are the drive for the company’s growth. CPT treats employees

as family and values the importance of a healthy workplace and learning opportunities.

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Company Profile







Employee of CPTF Optronics Co.,Ltd

Ms. Lih-Chu Lin & Mr. Kung-Yao Bao/Officer /Employee

This is the 15th year since Lih-Chu Lin first joined the company. She started off as our first-line worker and has served in positions as an assistant engineer and engineer. She is currently an assistant manager of the company. Lih-Chu’s husband is also an employee of CPT. We have quite a number of couples working for the company. Lih-Chu said, “Employees of CPT have, on average, worked for the company for over 5 years. I feel that I can always find someone to talk to about my problems. I am motivated to work hard and I feel content.”The company has in place a sound employee motivation system. Lih-Chu’s team put forward a proposal to upgrade the electronic positioning system in 2009. The team designed a set of electronic system and re-engineered the equipment, featuring full electronic positioning in replacement of manual positioning. The re-engineering proposal significantly increased the precision of the equipment. The re-engineering project has won the “2009 Fuzhou City Top 10 Golden Tips Award.” In CPT, it is common practice for each team to put

forward an average of 2 to 3 proposals each month.Ms. Yi-Chun Tseng, Manager of Human Resources Dept. explained that during the time when CPT was undergoing transformation and restructure, employees became unsettled due to the changes around them and uncertainties about the future. In response to the problem, the Human Resources Dept. set up the

Employee Relations Office to deal with and help employees resolve problems. The company also conducted regular “Harmonious Employee Relations” training courses for managerial staff to attend. A full-time psychologist was appointed to offer employees psychological consultation services at the company’s first aid office.Mr. Kung-Yao Bao is an engineer at CPT. He has a 70 square meter “room for married couples” in the company’s employee housing units. He received a wedding allowance of $570 from the company. Kung-Yao and his wife, Lih-Chu, are both employees of CPT. The couple got married in a collective wedding ceremony hosted by the company in 2004. Some two hundred newlywed couples traveled to Xiamen and Fuzhou Forest Park and spent a great time there- an experience that has become Kung-Yao’s most treasured memory.

Occupational Medicine: The Implementation Status

Dr. Duan-Jen Hsiao (MD, Ph), Part-time On-site Phyisican

Traditional occupational medicine focuses on preventing occupational diseases, health care, occupational safety and watching over employees who are exposed to hazards. However, following the change in time, the focuses of traditional occupational medicine no longer meet the diverse health requirements of corporate employees. It is essential to add the concept of “health promotion” and extend the scope of application to cover the health of both employees and their families. The new health concept shall not merely entail the passive act of disease prevention, but also the more active act of maintaining mental and physical health.I have been working with CPT in the role as an occupational medicine specialist for over a decade. I fully appreciate the fact that CPT perceives its employees as its most important assets. I collaborated with a group of occupational medicine specialists and highly experienced health management consultants to establish a comprehensive medical

resources network in order to provide employees with all-around medical and health services.


Contractor: King-Gold Fire Prevention Engineering & Consultants Co., Ltd.

Mr. Chang-Jen Hsu, On-site Executive, King-Gold Fire Prevention Engineering & Consultants Co., Ltd.

King-Gold Fire Prevention Engineering & Consultant Co., Ltd. successfully secured the tender for carrying out fire prevention and maintenance jobs at CPT’s Taoyuan production plant after undergoing supplier appraisal two years ago. We carry out our work in coordination with contractor engineering association rules and CPT’s declaration to achieve the zero-incident safety target. We also attend contractor negotiation meetings regularly. In general, we are able to cooperate with CPT’s current safety, hygiene and engineering control management requirements. CPT’s employees responsible for looking after environmental safety provide us with detailed information when required. We hope to continue doing business with CPT.

Conduct safety and health promotion for contractors

Contractor: L & K Engineering Co., Ltd.

Hou-Bang Hsiao, Assistant Manager, Production Technology & Services Dept., L & K Engineering Co., Ltd.

From Lungtan Plant, Bade Plant to Yangmei Plant, from piping engineering, wiring, installation of air-conditioning units, electrical engineering, installation of process system to system, resources and manpower integration, CPT has been my teacher and friend. CPT’s workplace environment is like a miniature society, fully equipped with resources, tangible or intangible. CPT’s culture differs vastly from that of other companies whose sole objective is to make profits. As such, employees or contractors alike have the best opportunity to learn and grow rapidly in the environment that CPT provides if they are dedicated to do so. CPT is the company in which young graduates will receive the best training and learning opportunities thanks to its sophisticated software and hardware facilities. Anyone who is looking for quick fame or who does things quick rather than does things well, he or she will find it difficult to survive in CPT. On the other hand, anyone who is dedicated to perfection and solid work will find working for CPT a rewarding experience. I have high expectations for CPT. I hope that CPT may infuse more energy into the society to support the community’s future developments.

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Company Profile







Awards & Recognitions

Region Production Plant Awards

Taiwan

Yangmei Plant

Received the “Outstanding Award” for the 2010 “Voluntary Workplace Health Care Management Certification Trial Project of the Council of Labor Affairs”

Received the 2010 “Occupational Safety and Health Leadership Award” presented by the Taoyuan County Government.

Received a “Class A” rating for the “2010 Incentive Scheme for Reduction of Air Pollutants at Public and Private Places of Taoyuan County”

Received the 2010 “National Occupational Safety and Health Management Organization Outstanding Award” presented by the Council of Labor Affairs, Executive Yuan.

Lungtan Plant Received a “Class A” rating for the “2010 Incentive Scheme for Reduction of Air Pollutants at Public and Private Places of Taoyuan County”

Taoyuan Plant

Received the “Health Leadership Award” for the 2010 Distinguished Workplace for Health Promotion

Received a “Outstanding” rating for the “2010 Incentive Scheme for Reduction of Air Pollutants at Public and Private Places of Taoyuan County”

Winner of the “Outstanding Award for Public and Private Enterprises” of the 2010 National Occupational Safety and Health Week Award

Accredited as an outstanding enterprise for its efforts in pursuing the Liver & Heart Care campaign of the ACT-HBV Taiwan Chapter in 2010

Offshoe

CPT Disply Techndogy (Shenzheng) Ltd.

CPT Display Technology (Shenzheng) Ltd.

Passed the ISO Audit by AUO Optronics Corp.

Successfully passed the 2010 annual audit by Samsung

Paid company income tax for 2009 (SDT)

Received the transfer pricing report for 2010 (SDT)

Became an accredited member of the Canton Province Fire Protection Association

Recognized as the major corporate exporter of the year (2010) in the New Guangming District of Shenzhen

Annual TMS audit (3-in-1)

Applied to the Shenzhen Municipal Government for the 2010 Financial Aid for Information Technology Investments

Annual QC080000 audit (SGS)

CPT TPV Optical (Fujian) Co., Ltd. Named the “Leader in Safe Production” in “Rongqiao Developing Zone”

Chunghwa Picture Tubes (Wujiang) Ltd.

Received an incentive award totalling RMB 1 million under Wujiang City’s incentive scheme for “2010 Key Technology Engineering Item.”

Received an incentive award totalling RMB 1.5 million under Wujiang City’s Incentive Scheme for Foreign Trade Development and Transformation.

Receive an incentive award totalling RMB 80,000 under the 2010 Incentive Scheme for Energy Conservation.

Named the Worker Bookstore of Jiangsu Province

Named the Patent Model Enterprise and received a RMB 30,000 incentive award

Named Wujiang City’s major taxpayer for 2010

Received the Wujiang City “2010 Leader in Technology Innovation Award.”

Listed as the 2010 Wujiang City Top 100 Company.

Rated a “Green-grade” enterprise for corporate environmental behaviors by the Environmental Protection Bureau of Wujiang City.

CPT Display Technology (Fujian) Ltd.

Honored as the “Passionate Educator & Enthusiastic Sponsor for Schooling”

Received the 2010 Outstanding Organization Award for Innovation in Occupational Technology.

Qualified as the “Intellectual Property Model Enterprise of Fuzhou City” and received an incentive award totaling RMB 30,000.

Named as a Intellectual Property Advantage Enterprise of Fujian Province and received an incentive award totalling RMB 40,000.

The company’s Quality Control Circle received the “1st Grade Award” of the “Electronic and Information Technology Industry Outstanding Quality Management Group Award” presented by the Ministry of Industry and Information Technology.

Successful registration of 31 patents; received patent invention incentive totalling RMB 60,000, a patent refund of RMB 82,430 and a subsidy of RMB 50,000 from the Intellectual Property Bureau of Fuzhou City. The total amount of patent-related funding received by the company was RMB 192,430.

Received an incentive award for export increase and inventory support fund totalling RMB 995,200.

Received an incentive award totaling RMB 500,000 from the Fuzhou City Government for upgrading of environmental protection measures.

Received an incentive award totalling RMB 251,209 from the government for upgrading of environmental protection measures in Mawei District.

Received a grant for Industrial Technology Research and Development for industries in Mawei District totalling $1.89 million.

CPTF Optronics Co.,Ltd.

Named the 2010 “Pioneer Corporation” by the Fuzhou Federation of Labor.

Became the first group of organizations in Fuzhou Science Park to build a “harmonious enterprise environment” within the organization and was the only model enterprise open to the public for visits.

Received the “Worker Pioneer and Socialist Labor Emulation Activist Award” from the Federation of Labor.


Policy Communication

CPT is dedicated to carrying out the concepts expressly stated in our environmental safety and health policy and promoting such concepts to our employees, clients and other stakeholders in hope that they may understand our dedication to fulfilling our corporate social responsibilities, protecting the environment, preventing occupational hazards. We sought to effectively communicate the contents of our policy to our stakeholders through the following avenues:

●Put up posters near the plant’s access control points.● Departmental occupational safety and health committee

members assist with promotion of the concepts.● Conducting environmental safety and health training and

events.● Organizing community services and community care

events in order for community residents to understand the company’s dedication to carrying out the policy.

● Requesting suppliers to incorporate safety and health concepts in their policies for promotion within suppliers’ organization.

● Convening supplier safety and health promotion conference and negotiation committee meeting to explain, promote, communicate and negotiate policy-related issues.

Environmental Safety and Heath Management SystemAll our production plants have established an Occupational

Safety & Health and Environmental Conservation Committee, of which the members were company representatives and employees elected through a voting system. The Committee is responsible for formulating, negotiating and supervising company-wide environmental/safety & health/ heath care initiatives. The Committee is chaired by the President with committee members consisting of labor representatives, safety and health management personnel, departmental supervisors, medical staff and Occupational safety and health committee members. The Committee convenes regular meetings to discuss the implementation status of occupational safety and health initiatives. Members, who are representatives of the respective departments, are responsible for promoting the initiatives to each colleague in their departments.

Major environmental safety events at CPT’s production plants in Taiwan during 2010 included:

1. Safety and health rating of all departments at production

plants: The results of each department’s safety and health related projects are evaluated under the rating system, the purpose of which is to increase employees’ awareness for occupational safety and health, which in turn will help promote a safety and health culture within the company.

2. Emergency Response and Evacuation Rehearsal: All production plants of CPT undertook overall planning and formulation of appropriate emergency response procedures. All production plants also conduct emergency response and evacuation rehearsals to enhance supervisors’ ability to respond appropriately in an emergency.

3. Observation of operational safety: Safety and health management personnel were responsible for conducting the observations in 2010, while the plan for 2011 would be to involve process supervisors to proactively conduct the observations.

4. Testing of safety interlocking device of equipments: During 2010, we have performed random testing on the safety devices of equipments to ensure that the interlocking units were working effectively.

5. Zero-hazard Statistics and Installation of Safety and Health Promotion Billboard: In order to increase employees’ awareness for workplace safety and health, the company has installed a billboard at the main access of our Taoyuan Plant to provide employees with the latest zero-incident statistics and news. In 2011, the company plans to display the record of zero-incident work hours and a picture of the safety and health weather index to present the safety and health performance of each department in the form of a weather chart.

Occupational Hazard

Prevention

CPT has an in-depth understanding that business operation is not just a profit-making matter. It is also of vital importance to invest in the prevention of occupational hazards. Effective safety and health management is fundamental to any company’s sustainable management. We make continuous improvements to uphold our “Keep Moving” spirit. We have pushed for implementation of the ISO14001, OHSAS18001 and Taiwan Occupational Safety and Health Management System (TOSHMS). We adopted the plan–do–check–act (PDCA) processes to ensure that we achieve the desired management results.

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Company Profile







Safety and Health Performance

In addition to regular safety checks and audits, the company also conducts periodic safety and health performance rating within the organization to fully implement our safety culture. Our accomplishments have far exceeded the standards prescribed by law. A summary of occupational hazards (excluding traffic accidents) occurred during 2010 was as follows: Disabling injury frequency rate was 0.998, disabling injury severity rate was 9.509 and total injury index was 0.097 for CPT (Taiwan).

Year Injury Index CPT (Taiwan) CPT (China) CPT (Malaysia)

2008

Disabling Injury Frequency Rate 0.169 0.730 10.766

Disabling Injury Severity Rate 343.460 2.628 122.175

Total Injury Index 0.241 0.044 1.147

2009




2010




Safety and Health Performance Table

Note 1: Data for 2008 excluded that of CPT TPV Optical (Fujian) Co., Ltd. and CPTF Visual Display (Fuzhou) Ltd.. Data for years 2008 to 2010 excluded that of the Hukou Plant. The data disclosed in the 2009 CSR report included the data of the Hukou Plant hence there may be a slight discrepancy.

Note 2: \Disabling Injury Frequency Rate, FR = (Disabling Injury per employee hours × 106) / Total hours worked.Note 3: \Disabling Injury Severity Rate, SR= (Total loss days ×106 ) ／Total hours worked.Note 4: Total Injury Index, FSI／[Disabling Injury Frequency Rate (FR) x Disabling Injury Severity Rate (SR)] / √1000.

3.5003.0002.5002.0001.5001.0000.5000.000

2007 2008 2009 2010

2.434

1.593

0.051

3.036

1.890

0.169 0.161 0.988

1.377

1.974

1.170

Disabling Injury Frequency Rate (Taiwan Region)Disabling Injury Frequency Rate (Offshore)Disabling Injury Frequency Rate (CPT)

400.000350.000300.000250.000200.000150.000100.000 50.000 0.000

2007 2008 2009 20100.

343.460

155.380

30.101 0. 0.

Disabling Injury Frequency Rate (Taiwan Region)Disabling Injury Frequency Rate (Offshore)Disabling Injury Frequency Rate (CPT)

Corporate Social Responsibility Report��

P roduc t ion P lan t Emergency RehearsalsAll our production plants have put in place a set of

comprehensive emergency response systems to prepare for any emergency. The systems include a reporting mechanism, a pre-established emergency response center (ERC), a pre-established emergency response taskforce (ERT), and emergency response equipments. We have also compiled a database of emergency response information for fire, earthquake, power stoppage, leakage of hazardous gas, or leakage of information to be used as the guidelines for handling an emergency or accidental event.

All production plants have set up an ERT to handle any emergency event. At present, our Taoyuan, Lungtan and Yangmei production plants have set up the respective ERC in addition to the ERT. The ERC is attended around the clock by full-time employees and is installed with the various emergency response equipment including gas detectors, fire alarms, security cameras, and the emergency ventilation system. As soon as the ERC becomes aware of the occurrence of an abnormal condition or accident, it will immediately call for establishment of the ERT through the emergency broadcast system for the ERT to take effective actions simultaneously.

The company has conducted a series of relating training programs at our production plans during 2010 to reinforce the abilities of supervisors and employees to respond appropriately in an emergency event. The company also organized different scenario rehearsals each month, of which the purpose were to enhance the on-site emergency response mechanisms.

Emergency Response Rehearsals Undertaken by CPT (Taiwan) During 2010

Item\Employee-

HoursTaoyuan

PlantLungtan

PlantYangmei

Plant Grand Total

Fire Safety Training 228 390 120 738

Emergency Response

Commander99 82 69 250

Emergency Response Taskforce

257 892 92 1241

Emergency Response Rehearsals

83 1,588 159 1830

Item\Employee-Hours

Chunghwa Picture Tubes (Wujiang) Ltd.

CPT Display Technology

(Shenzheng) Ltd.

CPT Display Technology (Fujian) Ltd.

CPTF Visual Display (Fuzhou)

Ltd.

CPTF Optronics Co., Ltd.

CPT TPV Optical (Fujian) Co., Ltd. Grand Total

Fire Safety Training 0 504 149 0 486 50 1189

Emergency Response Commander 0 0 0 0 0 3 3

Emergency Response Taskforce 69 120 0 0 0 30 1501

Emergency Response Rehearsals 4957 1720 1161 653 3152 3460 15103

Emergency Response Rehearsals Undertaken by CPT (China) During 2010

Emergency Response Rehearsals Undertaken by CPT (Malaysia) During 2010

Item\Employee-Hours

Malaysia (M Plant)

Malaysia (K Plant)

Grand Total

Fire Safety Training 0 6 6

Emergency Response Commander 0 0 0

Emergency Response Taskforce 43 0 43

Emergency Response Rehearsals 60 6 66

�7

Company Profile







Shar ing of Safety and Heal th ExperienceCPT is dedicated to improving our safety and health

performance. Our production plants in Taiwan also offered assistance to neighbouring enterprises through experience sharing:

1. Visiting the Institute of Occupational Safety and Health: Employees took a tour of the Institute of Occupational Safety and Health to gain an understanding on the government’s measures to promote occupational safety and health.

2. Occupational safety and health event organized by Ping-Jen Industrial Park: The purpose of their visit was to gain an insight into CPT’s accomplishments and experience in maintaining high occupational safety and health standards and organizing related events, so well known in the high-tech industry.

3. Visiting the Institute of Occupational Medicine and Industrial Hygiene of the National Taiwan University: A total of 30 teaching staff and students took a tour around our Taoyuan Plant on January 27, 2010 to share CPT’s experience.

4. Occupational safety and health guidance program for small and medium-sized enterprises: The company’s safety and heath management personnel took part in the 2010 “Taking Root Project- Occupational Safety and Health Guidance Program for Small and Medium-sized Enterprises” administered by the Taoyuan County Government, assisting the county government in offering guidance to small and medium-sized enterprises with respect to workplace safety and health, and making recommendations for areas requiring improvements.

5. Safety and Health Family Program (Yangmei Plant): “Safety and Health Family” was a program launched by the Council of Labor Affairs to share the experience in improving occupational safety and health in order to enhance local enterprises’ abilities for safety and health promotion and disaster prevention. The Program was carried out by disaster-prevention consultants of the County/Municipal governments and sponsored by core enterprises of the Program. CPT (Yangmei Plant) assisted the Taoyuan County Government to execute its Occupational Safety and Health “Taking Root” Project.

6. Safety and Health Assistance Service, Northern Region Inspection Office of the Council of Labor Affairs:

Convening regular contractor negotiation meetings to share CPT’s experience in promoting occupational safety and health with contractors and at the same time requiring contractors to adopt the relevant preventive measures to ensure work safety. The company also selects a few suppliers to offer them on-site assistance.

The Occupational Ergonomics Project

There has been an increasing number of reported muscle and skeletal injuries at workplace in recent years. Panel inspectors working at the final phase of our production process are required to make “repeated upper arm movements” to conduct their work. Upon examination, the percentage of people experiencing muscle and skeletal discomfort is on gradual rise. In light of this, the company has undertaken an occupational ergonomics project to reduce the risks of employees suffering from accumulated injuries and ease the discomfort arising from muscle or skeletal disorders.

The project was first conducted at our Taoyuan Production Plant in 2010. Environmental Safety and Health personnel, medical staffs and occupational medicine specialists of the National Taiwan University worked collaboratively with domestic ergonomic specialists to pursue an ergonomics improvement project, which expects to last two years. We aim to implement the project at other production plants in the future depending on the benefits we received. Based on the results of evaluation conducted on Taoyuan Plant, the following proposals will be made:

● Distribute health education information sheets and posters to educate operators who are exposed to higher ergonomic risks.

● Organize health promotion events on similar topics especially on teaching employees to undertake fitness training to enhance their muscular strength.

● Ease the symptoms of muscle and skeletal conditions of those who are exposed to ergonomic risks by undergoing preventive physiotherapy and fitness training.

● Perform “Operational Safety Observations” according to the results of the “Work Analysis” to modify existing operating modes.

● Offer on-site occupational medicine outpatient service for the convenience of employees.

Visiting the Institute of Occupational Medicine and Industrial Hygiene, NTU

Safety and Health Family Program


Blueprint for Learning

CPT’s personnel cultivation program is made up of two parts: Blueprint for Supervisor Learning and Blueprint for Specialist Learning. The program comprises of a total 12 major courses covering 29 functional areas of specialist, environmental safety and quality assurance courses. The company also clearly defined the compulsory and elective courses employees must complete depending on the areas they work in and their experience/position. The blueprints for learning will assist us to achieve our personnel cultivation objectives. With respect to cultivation of managerial personnel, the company has clearly formulated the level of competency, total management visions and strategic planning abilities required of our managerial personnel at all levels in the Blueprint for Supervisor Learning. The company also designed the learning path of the respective levels of managerial personnel, offering the various professional training courses each year to systematically cultivate our professional and managerial personnel. We hope to continuously improve the professional competency of employees and at the same enhance the leadership skills of our managerial team. We are working earnestly to offer fully subsidized external training opportunities for employees, and to construct an e-Library, online database, online learning resources and an online learning platform.

Da Yen Project

The company introduced an educational training program specifically designed specifically for departmental directors and higher-level managerial staff the “Da Yen Project” in 2007. The entire program was run in a top-down approach. Up to 76% of departmental directors and higher-level managerial staff, 92% of managers and 58% of assistant managers and team leaders received the training. We will continue to increase the

t r a i n i n g r a t e and propagate CPT’s coaching philosophy, to communica te t h e e x p e c t e d behav iou r o f “coaching based training.”

Arrangement of Training Courses

CPT continued to organize training courses at our production plants during 2010 in hope of enhancing employees’ managerial skills, professional knowledge and work skills.

Ever since the learning KPI system was introduced in 2009, we have achieved an average training of 18 hours per employee at our Taiwan production plants in Stage 1. With respect to our offshore operations, we have drafted the annual blueprint for learning with considerations on the various dimensions such as implementation, system, policy and KPI.

Average Training Hour Per Employee for 2010 (hour/person)

CPT Taiwan CPT ChinaCPT

Malaysia

Technician 10.7 12.9 7.2

Engineer/Deputy Engineer 50.1 17.7 26.2

Supervisor 53.1 22.0 16.4

Employee Performance Appraisal

All employees of CPT receive periodic appraisals of their occupational competency and development. Employees of CPT’s Taiwan and Malaysia production plants receive two performance appraisals each year, while those in our China operations receive four annually. Each supervisor rate the performance of an employee in accordance with the accomplishment of set targets and tasks, self-development, and actual behavior benchmarks. Supervisors also issue a follow-up interview notice to anyone who requires improvement to keep track of the status of improvement. The results of improvements are included in the next quarterly report for submission to higher management levels. The Human Resources Dept. determines an employee’s entitlement to salary increase or promotion on the basis of performance review standards.

We are pleased to announce that an electronic performance appraisal process has been established and all supervisors can now complete the appraisals in the online e-performance appraisal system.

Focus on management of personnel training to increase corporate competitiveness

Training and Attracting

TalentsCPT views cultivation of talents as a critical step to strengthening the quality of

our human capital. We not only take employee training seriously but moreover, we also emphasize the importance of employees’ future developments.

��

Company Profile







Multiple Channels for Employee CommunicationCPT has established numerous internal dialogue exchanges

such as the employee welfare committee, the employee union representing employees of our Taoyuan Production Plant and regular union meetings and conferences. We ensure that our employees have better rights than those prescribed by law and granted by the majority of other manufacturers.

Employee Pension Fund

CPT has put in place a comprehensive employee pension policy. We make a monthly provision for pension fund in accordance with ROC and local regulations prevailing in the country in which our offshore production plants operate.

● Taiwan: An employee is required to make a monthly contribution equalling to 6% of his or her monthly salaries for depositing into his or her individual pension account held at the Bureau of Labor Insurance. As at December 31, 2010, CPT’s pension fund reserve deposited at the special pension fund account amounted to $200 million, while vested benefits obligations amounted to $248 million.

● Offshore investee companies: According to local regulations, contributions to the pension fund account shall be expensed in the current period of income.

The Minimum Period of Notice for Change of Employment ConditionsIn order to protect the rights of our employees, CPT has

formulated the policy In conformance with government regulations, to give the following notice to employees in the event where the company’s operations experience significant changes that may potentially affect the rights of employees: at least 10 days notice for employees with between 3 months and 1 year of continuous service; 20 days notice for employees with over 1 year and under 3 years of continuous service; 30 days notice for employees with over 3 years of continuous service. CPT’s Hukou Production Plant was sold to Giantplus Technology Co., Ltd. on July 1, 2010. The company satisfied the policy requirement by making an announcement of related matters on March 17, 2010. Besides making an announcement of material internal policies, the related matters were also discussed in union meetings.

Employee Communication Channels

Region Communication Channel Party to the Communication Frequency

Taiwan

Survey on friendliness of the organization All employees Once /2-3 years

Information session to explain the current business status All employees Twice / year

Supervisor conference Supervisors Twice/ year

Staff conference Non-executive employees Twice / year

Human resources news All employees Once /2 weeks

CPT news All employees Once/ month

Instant news All employees Once/ month

EIP home page All employees Non-periodic

On-line employee suggestion box All employees From time to time

China

Human resources communication meeting All employees Non-periodic

Feedbacks for comments given in performance review (employees are free to offer any comments, which will be compiled by HR for further handling)

All employees Once/ quarterly

Employee Relations Office All employees From time to time

President’s Mailbox , HR Mailbox All employees From time to time

EIP/OA home page All employees From time to time

CPT in Yung City & CPT Family News All employees Once / quarter

Employee satisfaction survey Parties to the Communication Frequency

Business management conference All employees Once/2-3 years

Malaysia

Labor Negotiation Committee All employees Twice/ year

Restaurant Negotiation Committee Supervisor Twice/ year

Safety & Health Committee Non-executive employees Twice/ year

Company periodicals All employees Once/2-3 years

Human resources announcements All employees Once/2-3 years

EAPs

CPT has put in place the EAPs to offer free consultation services to employees on a variety of issues including work pressure, family and parenting, life and law, labor relations, gender relationships, and financial related topics. The company offered several legal courses that were in higher demand by our employees during 2010. We recruited professional lecturers to run the course on site to help more employees.

Caring for Employees

CPT values our employees and this is reflected upon our efforts in providing employees with barrier free communication channels. We view this as our role and responsibility as a global corporate citizen.

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