2009 Corporate Social

Responsibility Report

2009 Corporate Social Responsibility Report 4.5 Greenhouse Gas Inventory 25

1. Editing Principles 3
1.1 About the Report 3
1.2 Reporting Period and Cycle 3
1.3 Report Content and Boundary 3
1.4 Reporting Framework 3
1.5 Identification and Engagement of Stakeholders 4
2. CEO Commitment 5
2.1 Chairman and President’s Report 5
3. Company Profile 6
3.1 Introduction 6
3.2 Market Overview 8
3.3 Business Overview 9
3.4 Financial Performance 10
3.5 Milestones 11
3.6 Corporate Governance 12
3.7 Business Strategy 14
3.8 Risk Management 16
3.9 Responsibility to Investors 18
3.10 Trade Association 18
3.11 Awards 19
3.12 2008 Core Products 20
4.6 Environmental Performance Indicators 26
4.7 Green Products 28
4.8 Product Responsibility 28
4.9 Promotion of Energy Conservation 29
5 Social Policy 30
5.1 Our Customers 30
5.1.1 Global Service Network 30
5.1.2 Customer Service and Customer Satisfaction 31
5.2 Our Employees 31
5.2.1 Workforce 31
5.2.2 Employee Development 33
5.2.3 Wages and Benefits 34
5.2.4 Health, Safety and Risk Management 35
5.2.5 Employee Health 37
5.3 Suppliers 38
5.3.1 Supplier Policy 38
5.3.2 Supplier Quality Management 38
5.3.3 Supply Chain Risk Management 39
5.3.4 Contractor Management 39
6 Social Welfare 40
6.1 Community Giveback 40
6.2 Charity Donations 43
6.3 Corporate Volunteer 44

4 Environmental Policy 22 1 Supplemental Information 1: Contact Window 45

4.1 Missions and Declaration 22
4.2 Organization and System Certification 22 2 Supplemental Information 2: GRI G3 Content Index 46
4.3 Green Policy 23
4.4 Challenges and Opportunities of Climate Change 25

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 2009 Corporate Social Responsibility Report

1. Editing Principles
1.1 About the Report 1.3 Report Content and Boundary
Micro-Star International (MSI) takes “Excellent Product, Superior Quality, This report includes the data of MSI, MSI Computer (Shenzhen), MSI
Perfect Service, and Customer Satisfaction” as its business tenets and the Electronics (Kunshan) and the worldwide subsidiaries of MSI, and covers
goals of sustained operation since inception on August 4, 1986. We endeavor financial information, business operation, environmental issues concerning
to achieve excellence in product quality, services and operating performance product responsibility and environmental protection, and social issues
a nd share the results of our efforts with our clients, consumers, employees, concerning employees, suppliers and contractors, and public interest activities.
shareholders and investors. Amid the recent trend of globalization, financial
storm, corporate scandals, and economic slowdown, we never feel more
strongly about the responsibilities of a business towards its clients, suppliers, 1.4 Reporting Framework
shareholders, investors, employees and other stakeholders. We also develop a
The MSI Corporate Social Responsibility Report 2008 is published in
strong conviction that a business should be keen on giving back and showing
Chinese and English in reference to the third generation of sustainability
appreciation to the communities and the society. Thus in August 2008, we
reporting guidelines of Global Reporting Initiative (GRI G3). The report also
published the first corporate social responsibility report -MSI Corporate Social
declares GRI Application Level C and encloses a GRI G3 Content Index.
Responsibility Report 2008 to share with our stakeholders our operating
performance over the years and our efforts in addressing the environmental
issues and caring for the society. We plan to publish the corporate social
responsibility report in both Chinese and English every year from now on and
post the report on our website so the public can inspect and understand better
the operating status of MSI.

1.2 Reporting Period and Cycle

The MSI Corporate Social Responsibility Report 2009 covers the
period from January 1, 2008 to December 31, 2008. The 2008 report
was published on September 15, 2008. From 2008 on, we will publish a
corporate social responsibility report every year and make is available on
our website (http://tw.msi.com/html/popup/csr/index.php) for perusal and
download by the public.

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 2009 Corporate Social
Responsibility Report Editing Principles

Starting in 2009, the report will be laid out in landscape format in the hope Stakeholder Engagement Methods
to render the reading of electronic file more comfortable and convenient, and
to cut down the printing of hardcopy reports as our small effort to reduce the Stakeholder Communication methods Issues of concern Our response
and channels
impact of corporate activities on the environment.
Shareholders/ 1. Shareholders’ meeting. 1. Corporate Hold regular shareholders’ meeting, in which
investors 2. Investor conference. profits. the responsible officers are present to answer

1.5 Identification and Engagement of

3. Financial reports. 2. Operating status. the issues of concern to the investors, and
4. Announcements. update the company’s financial information
on company website regularly to enhance

Stakeholders
information transparency.
Clients/ 1. Website. 1. Product quality. Consumers can receive instant technical
consumers 2. Online service. 2. Product prices. assistance and have their problems solved
MSI stakeholders include primarily shareholders, investors, clients, 3. 080 service hotline.
4. Showrooms and service
3. After-sale
service.
through website and 080 phone service, and
learn about the latest product information
consumers, suppliers, contractors, government agencies and communities. centers. through constantly updated website.
5. Customer satisfaction
Information on the issues of concern to those stakeholders is furnished by survey.
MSI employees who have dealt with respective stakeholders. Currently Suppliers/ 1. E-mail. 1. Supply chain Aside from communicating our policies and
communications with the stakeholders take place mostly through conference, contractors 2. Teleconferencing. conditions objectives to our suppliers and contractors
(products,
website and reports. In the future we will take a multi-prong approach to 3. In-person meeting. through the annual corporate social
delivery date, responsibility report, we would exchange
understanding the needs of stakeholders and issues of concern to them by financial opinions and engage in discussions with
control, ESH the suppliers and contractors via e-mail,
means of, for example, questionnaire survey, phone interview and activities, requirements). phone or in-person meeting from time to
time. In the future, we will also use the
and use the feedbacks and suggestions as basis for improvement and online support system as a communication
response. platform with our suppliers.
Employees 1. Gathering. 1. Wages. Employees can obtain corporate information
2. Labor-management 2. Benefits. via e-mail, bulletin board and annual
meeting. 3. Work corporate reports, and express their views

Issues of concern to stakeholders

3. E-mail.
4. Bulletin board.
5. Employee hotline.
6. Suggestion box.
Community 1. In view of the project or
activity; no established
communication
channels at the present
time.
Government 1. Financial reports.
agencies 2. Provide reports or
make reply in a timely
manner as requested
or required by the
competent authorities.
Media 1. Press conference.
0 3 6 9 12 15 2. Press release.
environment. and opinions via labor-management
4. Career planning. meetings, suggestion box and employee
hotline.
1. Impact on We try to reduce the impact of our operations
community on the community by adopting roads, trees
environment. and traffic conductors. We also try to give
2. Giveback and back to the community by sponsoring local
contribution to volunteer police and firefighting squads. In
community. the future, we will expand our giveback and
3. Job opportunities contribution to the community by performing
for the locals. corporate volunteer works and participating
in town hall meetings.
1. Operating status We pay tax honestly and comply with the
of the company. laws and regulations of local governments,
2. Labor- and support the activities of the competent
management authorities.
relationship.
1. Operating status Based on the needs of internal operations
of the company. and activities, we hold press conference or
make press release from time to time.

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 2009 Corporate Social Responsibility Report

Maintaining dialogue with stakeholders and stakeholder engagement are

2. CEO Commitment keys to sustained operations. For our employees, we will continue to improve
business operations, include them in profit sharing and provide them with a
comfortable and safe work environment and career development opportunities
2.1 Chairman and President’s Report as our way to thank them for their hard work. For our suppliers and contractors,
we will collaborate with them to work for our mutual benefits and include the
The problems in the U.S. subprime market that surfaced in the latter half considerations of continual growth and long-term cooperation between them
of 2008 quickly cascaded into a global financial crisis. This crisis that impacts in our policy directions and planning. For our clients and consumers, we are
all industries continued into 2009, and MSI was not left unscathed. Although committed to product development and technological innovation to provide
our earnings and output in 2008 were affected by the financial storm, we still them with better products and services for their satisfaction is the force driving
recorded total revenue of NT$101.9 billion for the year, thanks to the concerted our continuous progress. For our communities and society, we provide local
efforts of our colleagues. job opportunities, and will, within the extent of our power, provide necessary
manpower and materials when helps are called for to fulfill the responsibility
of a corporate citizen, and implement the vision of “Beautiful Life and Green
In response to the impact of the financial storm, we have made adjustment to Homeland” in business operations.
our business operations and set the goals on seeking continual steady profit and
growth. We will enlarge the scale of production and material procurement for the
existing OEM business, look to enhance product quality through more rigorous
quality control and process improvement, and vie for OEM orders with more
favorable terms. In brand operation, we will consolidate marketing resources,
expand distribution channels and continue to boost the quality of after-sale
service, customer satisfaction and service efficiency as we seek steady growth
and profit. We are not contented with our current status of being a leading
manufacturer of motherboards and graphics cards, and a notebook computer
maker. We plan to expand our product lines to the downstream of industrial
computing and total solution services in the future.

In the face of global warming and greenhouse gas issues and the challenges
brought about by limited resources and escalating prices of raw materials,
we will embark on developing lighter, thinner, more energy saving and more
environmental friendly products from the R&D and design stages of product
development to showcase our commitment to the environment and the Planet
Earth. We will also conduct a series of internal activities to push for pollution
reduction, energy conservation and carbon reduction and plan to extend the
reach of such activities into communities to demonstrate our resolve to protect
the Earth with actions.

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 2009 Corporate Social
Responsibility Report Company Profile

3. Company Headquarters
Date of establishment: 1986 (moved to current

Profile
location in 1997).
Address: Taipei, Taiwan.
Chairman & GM: Joseph Hsu.
Capital: NT$10.08 billion
Number of employees: 17,480 worldwide (as of
3.1 Introduction year-end 2008).
Functions: Administration, R&D, business, sales
MSI was established on August 4, 1986.
and marketing.
H e a d q u a r t e r e d i n Ta i p e i , Ta i w a n , M S I h a s
production lines at MSI Computer (Shenzhen) and
MSI Electronics (Kunshan), and 28 subsidiaries and
service centers spread around the world in Europe,
Asia, America and Oceania to provide global
clientele with timely service and response.

MSI has upheld the business philosophy of

“Excellent Product, Superior Quality, Perfect
Service, and Customer Satisfaction” since
establishment, and customer demands and market
evolvement are the driving force that propels us
to develop and change. While we continue to MSI Computer (Shenzhen) Co., Ltd.
seek improvement in products, technologies and Address: Shenzhen, Guangdong. Date of establishment: April 2000.
services, we have also expanded our product lines Functions: Manufacture of motherboards and graphics cards, system assembly and others.
from the initial motherboards and graphics cards
to consumer electronics and notebook computers.
Our efforts and persistence have been richly
rewarded. In 2008, MSI and subsidiaries reported
a consolidated revenue of NT$101.9 billion, while
MSI alone recorded NT$97.77 billion in revenue,
NT$2.26 billion in earnings, and EPS of NT$2.25.
As of year-end 2008, MSI and subsidiaries had a
global workforce of 17,480 employees. MSI Electronics (Kunshan) Co., Ltd.
Address: Kunshan, Jiangsu. Date of establishment: December 2001.
Functions: Manufacture of motherboards, graphics cards, notebook computers, R&D and others.

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 2009 Corporate Social Responsibility Report

MSI Global Sales and Services

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 2009 Corporate Social
Responsibility Report
3.2 Market Overview
2008 Business Performance
MSI recorded NT$97.7 billion of revenue in 2008 with 40% from Europe,
34% from Asia, 14% from America and 7% from the rest of the world. By
product, motherboards accounted for 24.3%, graphics cards accounted for
18.43%, and other products accounted for 57.27% of revenue.
Market Analysis
As large PC makers increase the outsourcing of PC component
manufacturing, Taiwan’s motherboard manufacturers have been No. 1 in the
world in terms of shipment and market share since 2000. After 20 some years
of efforts, MSI has raced to the head of the pack and is now ranked among the
world’s top 5 motherboard, graphics card and server manufacturers.
Sales Distribution 2005-2008
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Company Profile
Market Outlook, Opportunities and Challenges
The motherboard business has entered the mature phase and experienced
decline in profits. All large-scale motherboard manufacturers are actively
developing new products and diversifying their business to mitigate the impact
of profit decline. MSI has also moved into the consumer electronics and
notebook computer business and is gradually gaining ground in the market
share of those products.
The desktop PC saw decrease in sales and drop in market demands in
Q4 2007, but the market rebounded in Q1 2008 under growing demands
from emerging markets, such as China and the appreciation of Euro
against USD. However as large computer makers started to push for less
expensive netbooks in Q3 2008 and the trend of notebook replacing desktop
became clear, the sales of motherboard and PC slipped. The global sales of
motherboards in 2008 amounted to 146 million units, off 4% from 2007.
In 2008, damped by the subprime debacle, the financial storm and rising
unemployment around the world, the consumer confidence waned and
consumer spending slipped. However the overall impact on the notebook
computer market was not as severe due to growing demands from the
emerging markets, amelioration of key component shortage and decline in raw
material prices. The global shipment of notebook computer was around 122
million units in 2008, up 25.1% from the year before.
Looking into the electronic market in 2009, the early launch of Windows
7 and China’s stimulus package of rural home appliance subsidies are good
news for the market. But because Windows 7 does not require hardware
upgrade and China’s rural subsidy policy applies mainly to the domestic
brands, the positive effect of Windows 7 on Taiwan’s OEM business will be
limited. The mini-notebook, Netbook first rolled out at the end of 2007 is
expected to see 100% growth in 2009 shipment as compared to 2008 on the
strength of easy portability and much cheaper price tag in comparison with
conventional notebook. For All-in-one PC, there will be more varieties out on
the market as more players join the match and it will definitely be on the “in” list
in the electronic market for the coming years.
 2009 Corporate Social Responsibility Report

3.3 Business Overview Motherboard is the key component of a computer, responsible for the input
and output of the computer system, including image transfer, network control,
audio and other multimedia functions. The motherboard plus graphics card
Scope of Business constitute the complete computer hardware system. Notebook computers
Our businesses cover the design of computer software and hardware, are portable and designed to mobile use, hence offering more convenient
and manufacture and sale of computer products and components, including applications.
the manufacture of electrical equipment, wired communication equipment,
wireless communication equipment, optical instruments, toys, controlled
telecommunications radio-frequency devices, medical equipment and general
instruments, the wholesale of toys, entertainment devices, electrical equipment,
telecommunications equipment and medical equipment, and retail of toys,
entertainment, telecommunications equipment and medical equipment. Product Mix
Products (Services) Motherboard Intel and AMD motherboards
Our main businesses have expanded from the initial manufacture and Graphics card NVIDIA and ATI graphics cards
sales of computer motherboard and graphics card to notebook computer, Server Server motherboard, workstation
communications and consumer electronic products and industrial computers.
We have also moved to diversify our business operations from the OEM of motherboard, rackmount server
motherboard and graphics cards.
Barebone All-in-one PC, Nettop PC, mini PC,
LCD PC
Industrial computer Industrial motherboard, industrial
computer system
Consumer electronics Automotive electronic products,
communication products
Notebook computer

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 2009 Corporate Social
Responsibility Report Company Profile

3.4 Financial Performance 2008 Product Mix In NT$1,000 Total: 97,773,051

Our consolidated revenue for year 2008 amounted to NT$97.77 billion, an

increase of NT$7.18 billion or 8% as compared to NT$90.59 billion in 2007.
Our consolidated after-tax profit was NT$2.27 billion, off NT$640 million or
22% as compared to NT$2.91 billion in 2007. Our earnings per share in 2008
dropped to NT$2.25 from NT$3.07 in 2007. Despite of record high revenue in
2008, our operating profit ratio fell due to increase in operating expenses as we
continued to expand markets.

2005~2008 Product Mix In NT$1,000

2007~2008 Financial Performance Indicators In NT$1,000

2005 2006 2007 2008

Sales revenue 69,669,052 74,532,127 90,589,643 97,773,051
Gross operating
5,829,534 6,114,381 8,066,894 9,314,210
profit
Net income 1,175,860 1,247,074 2,912,697 2,269,634
Basic EPS
1.50 1.42 3.07 2.25
(after-tax)

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 2009 Corporate Social Responsibility Report

2005~2008 Financial Performance Highlights In NT$1,000

3.5 Milestones
Established in Taipei, Taiwan, focused on the manufacture and
1986 sales of motherboards and add-on cards;

Moved to Xindian, Taipei County, focused on the manufacture and

1988 sales of motherboards and add-on cards;

The 1st Zhonghe Plant was inaugurated and manufactured mainly

1997 motherboards and add-on cards; moved to current address;

The 2nd Zhonghe Plant was inaugurated and manufactured mainly

1998 motherboards and add-on cards;

1998 Publicly listed (Stock Symbol 2377);

MSI Computer (Shenzhen) was established in China; focused on the

2005-2008 Shareholder Structure 2000 manufacture of motherboards and add-on cards;

The 3rd Zhonghe Plant was inaugurated and manufactured mainly

2000 motherboards and add-on cards;

2001 The 5th and the 6th Zhonghe Plants were inaugurated and
manufactured mainly motherboards and add-on cards;

MSI Electronics (Kunshan) established in China and focused on

2001 the manufacture of motherboards and add-on cards and system

assembly;
Funtoro Inc was established in Zhonghe, Taipei County to engage

2008 mainly in the research and development, sales and service of

consumer electronic products;
MSI Computer Trading (Shenzhen) was established in China to

2008 engage mainly in the marketing, sales and service of motherboards

and electronic components.

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 2009 Corporate Social
Responsibility Report Company Profile

3.6 Corporate Governance Profile of Directors and Supervisors

Title Name Education Concurrent Qualification or Remark
Board of Directors MSI
position
work experience
in commerce,
held law, finance,
We observe the Corporate Governance Best-Practice Principles for TSE/ or accounting,
GTSM Listed Companies promulgated by Taiwan Stock Exchange in corporate or holding
management and governance. We have a spokesperson system set up professional
license pertaining
to handle the suggestions or complaints of shareholders. We also have a to the MSI
shareholder registrar unit to keep track of information concerning our major business
shareholders. Internally, we have established the Operation and Management Chairman Joseph Hsu Department of Electrical President ν
Engineering, National
Rules of Group Enterprise for all business units and subsidiaries to abide Cheng Kung University
by. The Board of Directors comprises seven directors and three supervisors, Director Henry Lu Department of Electrical Senior Vice ν
including five non-independent directors and two independent directors. Engineering, National President
The directors and supervisors carry out their responsibilities and authorities Taiwan University of
Science and Technology
in accordance with the “Corporate Governance Best-Practice Principles for
Director Frank Lin Division of Electronic Senior Vice ν
TSE/GTSM Listed Companies”, which also entail periodic evaluation of the Engineering, National President
independence of certifying accountant. United College
Director Jeans Department of Electronic Senior Vice ν
Huang Engineering, Chung President
To enhance the operational efficiency and decision-making ability of the Yuan Christian University
Board of Directors, we have amended our Rules for the Conduct of Board of Director Kenny Yu Department of Electronic Senior Vice ν
Directors’ Meeting on 2006.12.28 and 2008.03.21 respectively in accordance Engineering, Feng Jia President
University
with the Securities and Exchange Act. The new Rules stipulate that directors
Director Song-chou MBA, National Chengchi None ν
should recuse themselves from participating in discussions of the board on Wang University
issues where conflict of interest exists. To uphold the interests of shareholders, Director Ming-ren Department of Insurance, None ν
investors and stakeholders, we arrange our directors and supervisors to take Hsu Tamkang University
courses on corporate governance, risk management, analysis of financial Supervisor Amy Hsu MBA, University of South None ν
Australia
statements, enhancement of business performance, corporate transformation
Supervisor Junn-hsiang Master of Accounting, None ν (Accountant)
and reform offered by Fu Jen Catholic University, Taiwan Corporate Hsu National Taipei University
Governance Association, and Securities and Futures Institute. Supervisor Kao-shan Department of Criminal None ν (Attorney)
Hsu Investigation, Central
Police University

Our website is available in 20 languages and we have assigned staff to take

charge of the gathering and disclosure of corporate information, and disclose
our financial and corporate governance related information from time to time.
Investors may also visit the Market Observation Post System to retrieve
information on MSI.

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 2009 Corporate Social Responsibility Report

Organizational Structure and Responsibilities MSI Organization Chart

1. Auditing Office: In charge investigating and evaluating the
implementation of internal controls and operating performance of
various functions.
2. President’s Office: Overseeing the affairs of business operations and
development.
3. Sales & Marketing Division: In charge of order handling and market
development.
4. Materials Division: In charge of material management and production
scheduling.
5. R&D Division: In charge of product design, development and
technology.
6. Administration Division: (1) Finance & Accounting Dept.: In charge
of account processing, voucher preparation,
review of forms and statements, preparation
and analysis of financial reports, fund
management, risk management, investment
management, and registrar and transfer
operation.
(2) Human Resources Dept.: In charge of
personnel administration, employee benefits,
education and training, and human resources
development.
(3) Administration Dept.: In charge of general
affairs, general works and asset management. Political Contribution
We are politically neutral and did not make any political contribution or
7. Production Division: In charge of production and process arrangement. engage in lobbying in 2008.
8. Quality Assurance Division: In charge of product quality and after-sale
services.
9. CE Product Business Unit: In charge of development and sales of
consumer electronic products.
10. NB Business Unit: In charge of notebook development and sales.

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 2009 Corporate Social
Responsibility Report Company Profile

3.7 Business Strategy Patent Application and Patent Granted in Taiwan

Business Strategy
Our business strategy centers on the outstanding personnel, R&D and
innovative technologies of MSI and ready grasp of the trends and evolvement
of technology industry, and aims to achieve steady growth and create
maximum profits for shareholders. Facing the rapid changes in market
environment, we keep close track of industrial tends and consumer demands,
and have expanded our product lines from motherboards and graphics cards
to personal computers. In business operations, we focus on enhancing brand
visibility and enlarging the market share of brand products through deployment
of marketing resources and sales channels. After we have made headway into
the notebook and industrial computer markets, we embark on greater efforts
to develop growing markets. In the future, we will continue to strengthen lean ı ijı ĵı ķı Ĺı IJıı IJijı

business management and customer relationship management.

On the other hand, we expand the scale of materials procurement through
OEM business and vigorously foster sales and marketing personnel. In our
R&D undertaking, we have a strong R&D team in place and take a prudent
approach to project selection and control. We also concentrate our resources
on major projects to align with market demands. In product quality and
customer service, we focus on enhancing our quick response and service
capability and follow up on customer problems with the aim to achieve total
customer satisfaction. We endeavor to apply lean concepts and management
skills on manpower, asset and expense control to boost operational efficiency.
In organizational operations, our goal is to achieve profit target through
functional division/value chain operations. To ensure the implementation of
company policies and objectives, we set annual targets for respective business
divisions in view of the market competition, and hold regular management
meetings to examine the working of business strategies and target attainment,
and take response measures promptly to minimize operational risk.
Research and Development
“High-tech enterprise” is an enterprise with R&D and innovation capabilities
above certain level and recognized as such by the Chinese government
following a review process. Both MSI Computer (Shenzhen) and MSI Electronics
(Kunshan) have been acknowledged as “high-tech enterprise” in China.
The electronic industry is intensively competitive, and the R&D capability has
become an important indicator of the core competency and future development
of an enterprise. MSI started out as an OEM service provider. But we never
stop emboldening our employees to undertake R&D and innovation activities.
We start to hold internal innovation contest in 2008 to encourage employees
to come up with innovative ideas and inventions. On the other hand, we hope
to encourage the exchange of knowhow and experience and cooperation
between departments through this activity and turn innovation and R&D into an
ongoing and inter-departmental undertaking inside the company. As of year-
end 2008, we have made 1,069 patent applications.

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 2009 Corporate Social Responsibility Report

Exchange of Knowledge and Passing on Experience In the future, we will continue the observation, learning and exchange in
technology, system and personnel among our operations in Taiwan and China.
In the face of intense competition and the changing global environment, we It is hoped through such method and platform of communication, we will
continue to learn from outside environment and adjust our business operations. establish common values and objectives, and develop the corporate culture of
We also constantly mull over the question: “Is there a quicker and more beneficent interactions and sharing across the group and achieve the purposes
flexible way for us to learn and readily respond to market changes?” Under this of continual enhancement of our strength and continual improvement of our
initiative, we began the first observation and learning session between MSI weakness.
Computer (Shenzhen) plant and MSI Electronics (Kunshan) plant in 2008. It is
hoped that through cross-plant exchange, observation and learning, the two
plants can identify their “commonness” (core competence in manufacturing
technology and management pattern) and “differences” (flexible LOB
variance in manufacturing technology and management pattern) in production
technology, management approaches and processes, and learn from each
other.

The benefits of cross-plant observational learning are not manifested

in “figures”, but in the dialogue, pass-on and learning of experience, and
development of interpersonal relationship between the personnel of the two
plants. The biggest change brought about by this activity is the “benign”
competition and interactions, “cross-plant” collaboration and sharing of
knowledge between plants.

Cross-plant exchange and discussion meeting

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 2009 Corporate Social
Responsibility Report
3.8 Risk Management
Operational Risk Management
We recorded NT$97.77 billion in revenue in 2008, with 40% from Europe,
38% from Asia, 14% from America, 6% from Taiwan, and 2% from other areas.
By product, motherboard accounted from 24.3%, graphics cards accounted
for 18.43%, and other products accounted for 57.2% of revenue. We have
successfully expanded our core businesses from motherboards and graphics
cards to notebook computer and communication and consumer electronic
products. We have also extended the reach of our products from Taiwan and
Asia to every corner of the world. The diversity of product lines and well-
dispersed market significantly reduce the operational risk associated with
product or market concentration.
The financial storm in the latter half of 2008 has led to global recession.
Many companies were forced to cut salary, lay off people, or even close down
business in the midst of operational difficulty. The financial storm has also
triggered interest rate and exchange rate volatilities, global credit crunch and
inflation. Our products are export-oriented and more than 90% of our sales and
purchases are denominated in USD. Although our USD income is greater than
USD expenses, exchange rate fluctuation does not produce too significant an
impact on our profit because a great proportion of the risk could be hedged
naturally and we engage in foreign exchange hedge on a regular basis.
Inflation would reduce consumer purchasing power and their incentive to buy,
hence reducing the demands for consumer products and producing negative
impact on our revenue and profit. The impact of inflation is all-encompassing,
not just on individual companies. Thus we endeavor in cutting down production
cost in the hope to offer prices that would stimulate consumer demands to
maintain our revenue and reduce the negative impact of inflation on our profits.
16
Company Profile
The business environment for high-tech industry is also changing rapidly.
Internally, we aggressively invest in information technology and people.
Externally, we keep up with the changes in client situation, products and
technology, and constantly examine our strategy and operational risk and
adjust corporate resources to achieve better performance and profit. We have
formulated the following strategies to reduce the overall risk of the company:
(1) For the original core businesses, regularly examine the market growth
and set reasonable above-industry average growth rate, market share
and profit targets.
(2) For the new businesses, set reasonable return on investment and the
target time for break-even point based on ex-ante assessment and
established business plan, and in view of the industry characteristics, set
strategic targets on, for example, obtaining the orders of target clients,
time of volume production, and market share in specific target markets.
(3) Respective business division holds performance review meetings on a
monthly basis, reexamines and adjusts strategic targets on a quarterly
basis, and promptly undergoes organizational adjustment to control the
risk if certain target is deemed unachievable.
(4) Readily grasp the daily business status, shipment, inventory, purchase
orders, and working capital of MSI operations around the world and set
alert indicators through IT system.
(5) Call global managers meeting once every half a year to review the
business directions of the company; senior management would make
strategic adjustment of resources and business operations to achieve the
most effective allocation of corporate resources.
 2009 Corporate Social Responsibility Report

Business Continuity Plan

Business operation is replete with challenges and changes. In the absence We will conduct BCP drill every year in a pragmatic manner by taking a
of proper planning and management, latent risk could be turned into crisis and full discussion and preparation beforehand, and evaluation and discussion
disaster. To keep a major disaster from disrupting business operation, delaying afterwards in the hope to minimize operational risk and ensure sustained
shipment and causing personnel casualty, and to minimize personnel, financial development.
and monetary loss in such an event, we undertake Business Continuing Plan
(BCP) every year since 2008 with the aim to effectively reduce operational
risk and achieve sustained operation through the measures and procedures of
hazard identification, risk management, prevention, and restoration control.

In 2008, we practiced fire recovery drill to test the response capability of

respective departments to keep the damages and losses to the minimum Business Continuity Management Plan
and keep the restoration time to the shortest time possible during and after a
disaster. This drill covers MSI in Taipei, MSI Computer (Shenzhen) in Baoan
and MSI Electronics (Kunshan) in Kunshan, and all departments. We also
carried out after-drill review and improvement to ensure that our BCP is viable
and meets the practical needs.

BCP Drill

17
 2009 Corporate Social
Responsibility Report Company Profile

3.9 Responsibility to Investors 3.10 Trade Association

We have been adhering to the business philosophy of “honesty” since
inception and endeavoring in upholding and increasing the interests of
investors and reducing investment risks in corporate governance practice
and financial management. Good credit standing and annual distribution of
dividends are our commitments and our ways to reward our shareholders and
investors. We convey corporate information to shareholders and investors
through investor conferences and teleconferencing. Our financial information is
also available on Market Observation Post System.
We have added a webpage on corporate social responsibility and a contact
window in 2008. Stakeholders can learn more about MSI and give us feedback
on issues of their concern through this channel. We will take those feedbacks
as reference when we set our directions for future development and targets for
improvement.
We are a member of the Taipei Computer Association (TCA) and the
Institute of Internal Auditors (IIA-Taiwan). The membership of the former keeps
us informed of the status and activities of other enterprises and the industrial
trends. The membership of the latter showcases our attention to corporate
governance that we hope to achieve sustained operation by improving our
internal control systems on a continuous basis.
Internationalization is also the direction and goal of our efforts. Thus
becoming a member of international organizations and an active player in the
legislation process are on our roadmap. Our ultimate goals are to bring about
the development and progress of Taiwan’s electronic industry and enhance the
international visibility of products made in Taiwan.

In the future, we will continue to reveal the operating status and financial
performance of the company through financial statements, annual reports,
shareholders’ meetings, news release and website to enhance information
disclosure and investors’ confidence in us.

18

3.11 Awards
Named Taiwan Top 20 International Brands;
Received the Outstanding Innovative
Enterprise Award and R&D, Management and
Innovation – Personal Achievement Award in
Industrial Technology Advancement Award of
Ministry of Economic Affairs;
The only Taiwanese company that received the
Computex Best Choice of the Year - Domestic
Enterprise;
Motherboard received Best Choice of Computex
Taipei Award three years in a row;
The only notebook computer product that
received the Best Choice of Computex Taipei
2008 Award;
19
2009 Corporate Social Responsibility Report
Ranked 33rd in enterprise category and 21st in electronics
industry category in Common Wealth Magazine’s Taiwan Top 1000
Enterprises;
Named Top 150 Enterprises and Top 10 Computer System
Manufacturers in Business Weekly’s Top 1000 Corporate Rankings
Across Taiwan Straits;
Received Taiwan Excellence Award
nine years in a row;
Motherboard named “Reader’s Top Choice” and graphics card named
“Leading Brand by Market Share” by readers of the biggest IT print
media in China three years in a row.
 2009 Corporate Social
Responsibility Report Company Profile

3.12 2008 Core Products

Barebone Wind PC CS120 Wind PC is only 6.5 cm thick, about 1/3 of
the conventional ATX shell, and supports
7.1 sound output and DVD combo. It can
come with a built-in TV card to become
a powerful TV that stores up to 30 DVD
films to satisfy consumer’s demand for
high-capacity storage solution.

All-in-one Wind Top Wind Top All-in- MSI Wind Top All-in-one (AIO) offers
one 18.5 inch LCD screen and a streamlined
exterior. Only 3.5cm thick, this AIO PC
adopts a highly stable and efficient 26-dB
cooling fan system that is quieter than a
house fan.

Notebook GX600 MSI GX600 with exclusive turbo
battery technology allows switch
between power saving and high-
performance operating mode to
instantly increase the speed of the
CPU and the system up to 20%.
The GX600 takes into consideration
both battery power consumption
and computing performance to help
reduce burden on the environment.
Notebook GX620 MSI GX620 is built in with twin turbo
that allows user to choose from five
power management modes – office,
gaming, movie, presentation and turbo
battery to achieve energy saving without
affecting system operation. GX620
features a 15.4 inch wide screen that
weighs only 2.8 kg, high-end graphics 3
card, and Dolby surround to deliver the
best entertainment experience to users.

Industrial Computer WindBOX (MS-9A15) Ultra power saving mini system

designed specifically for the Intel Atom
processor, MS-9A15 is built in with
MPEG-2 hardware decoder to reduce
CPU utilization when playing. It is
a perfect combination of low power
consumption and mini size.

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 2009 Corporate Social Responsibility Report

Motherboard Eclipse SLI Eclipse SLI features Intel X58 chipset coupled
with DDR3 to boost the 3D effect. Its power
supply uses DrMOS to increase energy
consumption efficiency up to 95%.

Motherboard DKA790GX Platinum DKA790GX Platinum features AMD 790GX/

SB750 chipset and is equipped with the brand
new advanced clock calibration (ACC). It offers
full HD, high-performance 3D display, and
brand new Flat Circu-Pipe cooling solution to
satisfy the needs of wild game player and heavy
multimedia applications.

Graphics Card N9600GT Hybrid Frozr The N9600GT comes with MSI exclusive “Hybrid
Frozr” cooling technology that automatically
adjusts turning speed and heat radiation based
on the use condition of the computer. When the
CPU is executing 3D drawing or games, the
1
4 graphics card would operate automatically to
achieve high-performance cooling. When the
CPU is handling the task of word processing or
2
Internet connection, the graphics card would
stop turning automatically to save power.

Graphics Card R4850-2D512-OC On the strength of exclusive energy saving

5
and cooling technology, R4850 OC boosts the
core processing speed of graphics card without
increasing power consumption. It achieves
the purpose of environmental protection while
allowing consumers to enjoy high-performance
experience.

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 2009 Corporate Social
Responsibility Report
4 Environmental Policy
4.1 Missions and Declaration
The World Business Council for Sustainable Development (WBCSD)
proposes the concept of eco-efficiency. Initially eco-efficiency means “doing
more with less.” Stephan Schmidheiny, a founding member of the WBCSD
says: “I predict that within a decade it is going to be next to impossible for a
business to be competitive without also being 'eco-efficient' -- adding more
value to a good or service while using fewer resources and releasing less
pollution."
Reduction is the corer concept of eco-efficiency, regardless whether it is
reducing the emission or discharge of pollutants, or reducing the use of energy
resources. We realize that eco-efficiency begins with doing the “right” things,
and use the “right” methods to provide the “right” products or services. In the
efforts to provide products and services beneficial to the environment and
mankind, our product development follows the principles of green design,
green resource and green technology, and our product designs are geared
towards “low hazard”, “extended product life”, “energy saving” and “ease of
recycling” and observe the three Rs -- reduce, reuse, recycle.
22
Environmental Policy
4.2 Organization and System Certification
MSI, MSI Computer (Shenzhen), and MSI Electronics (Kunshan) have all
been ISO 9001 (quality system), ISO 14001 (environmental management
system), and OHSAS 18001 (occupational health and safety) certified.
MSI Computer (Shenzhen) and MSI Electronics (Kunshan) are in addition
QC080000 (hazardous substance process management) certified. In our daily
operations, we also hold onto the spirits and principles of PDCA - P (Plan),
D (Do), C (Check), A (Action) in quality, environment, safety and health by
carrying out the steps of planning and evaluation beforehand, implementation
and operation, and check and corrective measures afterwards. Through the
implementation of relevant activities, we are able to improve product quality,
reduce operating risk, reduce energy consumption, optimize the use of
resources, and prevent accidents so as to provide our employees with a cozy
and safe work environment and reduce the impact of our daily activities on the
environment.
ISO 9001 Certification ISO 14001 Certification ISO 18001 Certification
 2009 Corporate Social Responsibility Report

4.3 Green Policy

The European Union (EU) enforced the Restriction of Hazardous Substances
(RoHS) Directive and the Waste Electrical and Electronic Equipment (WEEE)
Directive in 2006. Since then, the electronic product market has undergone a
series of changes on, for example, choice of parts materials, use of different Low
welding materials in processes, implementation of eco-design, and product hazard Ease of
recycling, to adapt to the newly implemented environmental regulations. recycling
In response to the global green wave, we established a Green Project Team
in August 2008 with the following objectives:

1. Staying informed and quickly responding to international Social

conventions and environmental regulations of various countries. responsibility
2. Formulating and implementing green product policy and framework. Extended
product life
3. Minimizing the impact of our products on the environment. Energy saving
We formulate green policy and framework based on the domestic and
foreign environmental regulations, our knowledge of the customers’ demands
for environmental friendly products, and analysis of the possible impact of our
products on the environment. Through this management mode, we establish
the green targets and plans to apply to the entire product process, from design
to production. We also ask our suppliers to meet the same guidelines and
undertake necessary material control.

Green Tenets
“Low hazard”, “extended product life”, “energy saving” and “ease of
recycling” are the four tenets we observe in product design and manufacturing.
We also endeavor persistently towards the goal of creating corporate
profits while continuously reducing the impact of all of our activities on the
environment.

23
 2009 Corporate Social
Responsibility Report Environmental Policy

Green Framework
Target Method
Low hazard Eliminate the use of hazardous
materials that may produce
significant impact on the
environment in the design and
material selection stages
Under the guidance of the Foundation of Taiwan Industry Service, we
embarked on a promotional program for eco-design and green product
inventory taking from April to November 2008. In this program, we conducted
Results inventory of energy-intensive products and undertook R&D to produce designs
 Eliminate the use of that use less resources. We also included our supply chain into the control
prohibited / restricted materials: operation and finished our first “Ecological Profile.” We understand that the key
Lead (Pb), cadmium (Cd), to eco-design is to take the possible environmental impact produced throughout
mercury (Hg), hexavalent the life cycle of a product into consideration in the product design stage and
chromium (Cr6+), brominated
develop a viable plan or strategy to reduce such impact. Such approach not
flame retardant (PBB & PBDE),
dimethylformamide (DMF),
only complies with the EU EcoDesign Requirements for Energy Using Products
and perfluorooctane sulfonate (EuP) Directive, it embraces the very spirit of EuP.
(PFOS)
 Reduce the use of following
materials:
Brominated materials (Br),
chlorinated chemicals (Cl),
Phthalates, and poly vinyl
chloride (PVC).

Extended 1. Enhance product quality through 1. Ease-of-upgrade design.

product life design, selection of materials, 2. Product warranty period
and process improvement. extended.
2. Extend product warranty period. 3. Sufficient stock of spares.
3. Stock sufficient spares for
maintenance.

Energy saving Develop new energy-saving 1. 4+1 phase circuit design.

technologies. 2. Circu-pipe design.
3. Dual core cell.
4. Turbo battery technology.

Easy to Design products and packaging 1. Less use of compound

dissemble, that are easy to dissemble and materials.
easy to recycle recycle. 2. Easy-to-dissemble design.
3. Increase in the use of easy- MSI 2008 Ecological Profile
to-recycle materials.

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 2009 Corporate Social Responsibility Report

4.4 Challenges and Opportunities of We conduct the inventory accounting in accordance with ISO14064-1
and The GHG Protocol. The inventory boundary covers MSI, MSI Computer
Climate Change (Shenzhen) and MSI Electronics (Kunshan) and is taken on six types of gas:
carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons
The impact of erratic climate patterns caused by global warming in recent (HFCs), perfluorocarbons (PFCs), and hexafluoro-sulfide (SF6). By their sources,
years is seen in many parts of the world. Climate change affects the stable the emissions are defined under Scope 1, direct greenhouse gas emission,
harvest of agricultural products, which could lead to food shortage, price mainly coming from emergency generators, transportations, extinguishers, and
hike and price fluctuation. Natural disasters caused by climate change also the Freon emission of drinking fountain and air condition, and Scope 2, indirect
cause wrecks, resulting in loss of lives around the world. Thus the issue of greenhouse gas emission, mainly coming from outsourcing electricity.
greenhouse gases (GHG) is now the focus of worldwide attention. More so,
GHS reduction is on the top agenda of governments and environmental groups MSI Greenhouse Gas Inventory
around the world.
Year Boundary Standards Total emissions Major sources Remark
2007 1. MSI ◎ ISO 14064-1 113,675 metric ton Outsourcing Verified by
Climate change affects the operation and maintenance of machinery and 2. MSI Computer ◎ The GHG CO2e electricity third-party.
equipment and causes the unstable supply of water, electricity and fuels as well (Shenzhen) Protocol
as price hikes, which in turn undermines the purchasing power of consumers. All 3. MSI Electronics
of those factors jack up the cost of doing business and erode corporate profits. (Kunshan)
2008 1. MSI ◎ ISO 14064-1 121,605 metric ton Outsourcing Verified by
2. MSI Computer ◎ The GHG CO2e electricity third-party.
Climate change adds to the difficulty of business operations. However we (Shenzhen) Protocol
view the difficulty both as our challenge and our opportunity. We will admonish 3. MSI Electronics
(Kunshan)
ourselves to develop more environmental friendly, more energy saving and
higher performance products to meet consumer demand and expectation,
while fulfilling our responsibility as a corporate citizen. To enhance the reliability of our GHG inventory report, we enlisted the
service of outside professionals to give several training sessions on internal
audit and appointed an impartial third-party reviewer to undertake verification
4.5 Greenhouse Gas Inventory work in 2008.

Our operating processes include mainly R&D in office settings and assembly
MSI conducted GHG inventory accounting the first time in 2007, making
work in plants, which do not generate significant pollution. However we still
2007 the base year. Our 2007 total GHG inventory was 113,675 tonnes of
impose upon ourselves the responsibility of a corporate citizen by undertaking
CO2e, whereas our 2008 GHG emissions totaled 121,605 CO2e, an increase
GHG inventory accounting since 2007, the first company in Taiwan’s electronic
of 7,930 tonnes from 2007, with CO2 generated from purchased electricity
industry to do so. Our aim is to have a firm grasp on the level of GHG produced
being the primary source of GHG emissions. If measured by eco-efficiency
from our business activities. Based on the results of GHG inventory accounting,
per $1 million in revenue, the carbon emissions per 1,000 tonnes generated
we will draft GHG policy and set the reduction targets. We will also continue
NT$7,969,200 in revenue in 2007 and NT$8,040,200 in revenue in 2008,
to promote GHG reduction, endeavor in the development of energy saving
an increase of 1% from 2007, indicating some improvement resulting from
products, and establish ourselves as a paradigm in the industry.

25
 2009 Corporate Social
Responsibility Report Environmental Policy

our internal campaign of energy conservation and carbon reduction. We will

continue to promote such activities to work towards the goal of continuous
growth in revenues and continuous decline in GHG emissions.

2008 Emission Ratios of Various

GHG Emission Ratio by Plant
Greenhouse Gases
2.97% 0.01% 1.67%

ISO14064-1 Certification of Three MSI Plants

4.6 Environmental Performance Indicators

CO2 Our operating activities include mainly R&D and production/assembly
95.35%
CH4
N2O
operations in office and plants and consumes lots of water and electricity. In
HFCs 2008, we consumed 1,647,004 tonnes of water and 116,044,677 degree of
PFCs
SF6 electricity. By consumption per $1 million in revenue, we consumed 1,334
degree of electricity and 22 tonnes of water per $1 million in revenue in 2005
versus 1,187 degree of electricity and 22 tonnes of water per $1 million in
revenue in 2008. We will continue to improve our processes and promote
the activities of electricity and water conservation inside the company. Our
Revenue ($1 million) 90589.943 relentless goal is to achieve continuous decline in resources consumption while
2007 eco-efficiency indicator = = = 796.92
CO2 emissions (1,000 tonnes) 113.675 enjoying revenue growth.
Water consumption of three MSI Electricity consumption of
plants, 2005-2008 three MSI plant, 2005-2008

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Revenue ($1 million) 97773.051
2008 eco-efficiency indicator = = = 804.02
CO2 emissions (1,000 tonnes) 121.605
IJĶııııı

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Ķııııı

26
 2009 Corporate Social Responsibility Report

Gasoline and diesel consumption of three MSI plants, Total recyclable solid waste, 2007~2008
2007~2008
ķıııııı

Ķıııııı
Ĺıı

ĸıı
ĵıııııı
ķıı

Ķıı Ĵıııııı

ĵıı
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In 2008, we used altogether 723 kiloliters of gasoline and diesel fuel, an

increase of 239 kiloliters as compared to 484 kiloliters in 2007. The reason for
the big jump in consumption could be attributed to the frigid cold weather in Total non-recyclable solid waste, 2007~2008
northern China in 2008 that the MSI Electronics (Kunshan) plant had to use
large amount of gasoline and diesel to heat water for use by employees. IJııııııı

We engage mainly in the assembly of electronic products. Thus the solid Ĺıııııı
waste we generate include mainly IC tray, tin slag, waste plastic, waste
paper and mixed metals. Some of the waste are processed and recycled by
ķıııııı
professional waste hauler, whereas IC trays and waste paper are recycled
by the suppliers for reutilization so as to reduce the use of resources and
generation of waste. ĵıııııı

ijıııııı

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 2009 Corporate Social
Responsibility Report Environmental Policy

4.7 Green Products 4.8 Product Responsibility

“ENERGY STAR” is a voluntary partnership program introduced by
the U.S. Environmental Protection Agency and the U.S. Department of
Energy to encourage businesses and consumers to adopt effective energy
efficiency solutions, and thereby save energy and money and reduce carbon
dioxide emissions to achieve environmental protection by slowing down the
greenhouse effect.
To reduce the impact of our products on the environment and meet the
consumer demand for energy saving products, we identify the goals of
improved energy efficiency, less energy consumption, and saving money for
consumers starting from the design and development stage of our products.
Currently we have 27 notebook and all-in-one (AIO) products that are “ENERGY
STAR” certified.
As consumers become increasingly aware of the issues of global climate
change and environmental protection, their demand for environmentally friendly
products also rises. That is, a product needs to be less polluting, consume
less energy and is recyclable on top of “low price” and “good quality” so our
environment could be sustained.
ECO-design stresses taking the issue of how to reduce the environmental
impact of a product throughout its life cycle into consideration in the product
design stage and developing viable plans or strategies to reduce such
impact. In product design, we put considerable efforts in functional design
and efficiency enhancement to cut down the use of resources. We have
also embarked on a promotional program for eco-design and green product
inventory taking from April to November 2008. In the process, we included our
supply chain into the control operation and finished our first “Ecological Profile.”

Product Number of Product model When we export our products to EU and Japan,
certified models we register with the local government the quantities
Notebook 25 1. Netbook: U100, U200
of imported products and pay a fee for the recycling
computer of our products by the local government or private
organization in the future so as to meet the WEEE
requirements and lessen the impact of the product
2. Notebook: X340,
on the environment. In 2008, we started to apply for
X400, X600
“green product” certification to convey to consumers
the energy efficiency and environmental friendliness
of MSI products.
AIO PC 2 MS-6633, MS-6638

Simple, environmentally friendly and multi-purpose packaging

28
 2009 Corporate Social Responsibility Report

For product packaging and accompanying printed materials, we cut down Energy Conservation Activities
the graphic design and use single-color printing instead of multi-color printing.
We use bio ink made of soybean in place of traditional ink for the print to keep
the content of volatile organic compounds (VOCs) and polycyclic aromatic Water consumption Electricity consumption Water recycling
hydrocarbons (PAHs) that might be hazardous and cause discomfort in humans 1. Add water saving flush 1. Use solar water heating 1. Encourage
to the minimum. valve to showers. system. employees to use
2. Install automatic sensor 2. Install energy saving T5 used paper.
lighting fixtures in some 2. Sort garbage.
4.9 Promotion of Energy Conservation
flush device to urinals.
3. Use inverter water machine shops. 3. Encourage suppliers
pump for the central air 3. Turn off unnecessary lighting to recycle their own
The World Commission on Environment and Development (WCED) defined conditioning system. in offices. supply.
sustainable development in 1987 as “development that meets the needs of the 4. Use reclaimed water to 4. Cut down the working
present without compromising the ability of future generations to meet their irrigate trees in the plant hours of chiller and install
own needs”, while the International Union for Conservation of Nature (IUCN) compound. frequency inverter to reduce
defines sustainability as “improving the quality of human life while living within 5. Use water-saving power consumption.
the carrying capacity of supporting eco-systems.” faucets. 5. Use sound/light control
switches for lighting facilities
As the resources we use in our daily activities are primarily electricity and in stairwell.
water, we use sound/light control switches for lighting facilities in stairwells, and 6. Switch off lights during lunch
cut down the working hours of chiller and install a frequency inverter. We use break hours.
the energy saving T5 lighting fixtures in some of the machine shops, switch 7. Control the use hours of
to solar water heating system in the Kunshan security guard dormitory, and elevators and encourage
turn off unnecessary lighting in offices. We encourage employees to switch off employees to climb stairs.
lights during lunch break and control the use hours of elevators. These energy
conservation measures have produced positive results. In 2008, we used
1,120,329 degree of less electricity than 2007. We continue to carry out garbage sorting, encourage employees to use
used paper, and encourage suppliers to recycle their own supply to achieve the
purpose of resource reutilization. In 2008, our total recycled waste increased
In the efforts of water conservation, we use inverter water pump for the
by 729,382 tonnes as compared to 2007.
central air conditioning system, install automatic sensor flush device to urinals,
and add water saving flush valve to showers. We use reclaimed water to
irrigate trees in the plant compound to achieve water reutilization. In 2008, we To raise the world’s attention and awareness to environmental protection, we
used 113.675 tonnes of less water than 2007. held an online short film contest on the theme of “Save the Earth Campaign –
MSI Environmental Intelligence” in April 2008. In the ensuing month and a half,
we received creative environmental films from Germany, France and Taiwan. We
hope through this contest that accepts entries from all over the world, people
will become more retrospective and mindful of the issues of environmental
protection.

29
 2009 Corporate Social
Responsibility Report
5 Social Policy
In 2008, we consolidated the “quality policy”, “business philosophy”, and
“environmental, safety and health (ESH) policy” into “ESH and Corporate Social
Responsibility Policy.” We revised our policy to stay in line with the change of
time and demonstrate our consciousness of the economy, the society and the
environment. More importantly, this policy embodies our commitment to all
stakeholders, our business philosophy and our long-term goals.
A poster for MSI ESH and Corporate Social Responsibility Policy
30
Social Policy
5.1 Our Customers
Customer satisfaction is one of the four business tenets we adhere to. Aside
from OEM and ODM clients, our clientele also includes agents, distributors and
consumers. We serve a worldwide clientele in Taiwan, Europe, America, Asia,
Australia and China.
5.1.1 Global Service Network
We have 28 subsidiaries and liaison offices in China, USA, Canada, Mexico,
Australia, Brazil, Japan, Korea, India, Middle East, Hong Kong, Netherlands,
France, Poland, Serbia, Italy, Russia, Ukraine, Turkey, Czech, and Spain.
We also have MSI showroom and service centers
in Taipei, Hsinchu, Taichung, Tainan and Kaohsiung,
Taiwan, providing the services of repair, testing,
replacement, technical support and accessory sale.
These service centers in five metropolitan areas
provide consumers with direct, convenient and fast
services.
Locations of Showroom and Service Centers in Five Metropolitan Areas in Taiwan
 2009 Corporate Social Responsibility Report

5.1.2 Customer Service and Customer Satisfaction 5.2 Our Employees

Our services cover all MSI products, including motherboard, graphics
card, server, notebook, barebone, and consumer electronic products. All MSI The most important keys to achieving “Excellent Product, Superior Quality,
notebooks enjoy two-year worldwide warranty. Perfect Service, and Customer Satisfaction”, the business tenets of MSI,
are personnel recruitment, training and cultivation. Only outstanding R&D
personnel could create quality products that meet customer satisfaction;
Besides setting up subsidiaries, liaison offices, service centers and
only outstanding support service personnel could understand the needs
contracted service centers to serve clientele in different parts of the world,
of customers and solve their problems. It takes a business to provide its
we also offer product inquiry, repair service and technical support through
employees with a good work environment, a reasonable wages system, diverse
our online customer service system and service information network. We
training programs, and career development opportunity in order to recruit and
would also carry out from time to time customer satisfaction survey and use
retain excellent personnel.
the customer feedback as basis for improving our service items, quality and
operational process.
Our employee wages, benefits, training and pension systems offer more
than what are required by law as we wish to provide our employees and their
For consumers in Taiwan, we provide repair collection service through
employees with a wealth of diverse corporate cultural activities. Thus many of
FamilyMart convenience stores throughout the country since 2006, and the
our training programs and activities are designed to strike a balance between
repaired product would be returned to an address designated by the customer.
work and family for our employees and improve their health and well-being.
As of year-end 2008, we have served more than 7,000 customers through
FamilyMart. Consumers can also learn about our product information, status of
repair and technical services through the MSI Online Customer Service System 5.2.1 Workforce
or the 0800 toll-free hotline.
Workforce Structure
As of year-end, MSI had 17,480 employees worldwide, of which 7,718 or
44% were male and 9,762 or 56% were female.

In 2008, we had 162 female managers, accounting for 20% of management.

The percentage of our female managers has been maintained around 20%
over the years.

Work with convenience stores to provide

convenient and all year round repair services

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 2009 Corporate Social
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Employee Turnover Child Labor Avoidance and Forced Labor Prohibited

By improving the quality of work environment, offering reasonable wages, The Electronic Industry Code of Conduct (EICC) requires the protection of
diverse training programs and career development opportunities, and holding workers’ interest to ensure that working conditions in the electronics industry
activities and programs conducive to the balanced development of body and supply chain are safe, that workers are treated with respect and dignity.
mind, we are able to keep our average employee turnover rate to around 10%.
We enforce the labor standards of child labor avoidance and freely chosen
Number of Employees and Number of Managers and employment in all MSI plants. We stipulate in company rules that “Child labor
under 15 years of age is not to be used in any stage of manufacturing”, and
Percentage by Gender Percentage by Gender set out rules and requirements for the nature of work that employees age 15 ~
ijıııı IJııı
18 may engage in, and prohibit workers under age 18 to engage in hazardous
work.
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Non-discrimination, Non-harassment, and Freedom of
ķıı

IJıııı
Association
ĵıı We strictly prohibit any form of discrimination, harassment or inhumane
treatment of workers. We have complaint hotline and complaint mailbox set
Ķııı
ijıı
up in every plant that are charged by assigned staff. Employee’s complaints
or opinions are kept strictly confidential and will not linked to performance
review or wages. The management will hold labor management meeting with
ı ı worker representatives on a regular basis, in which decisions are made on the
suggestions or views conveyed by worker representatives and recorded for
subsequent improvement actions and follow-up. The MSI Computer (Shenzhen)
and MSI Electronics (Kunshan) plants have union established, where
2008 Workforce Composition employees hold meetings every quarter to discuss issues of concern and make
suggestions to the management.

32

5.2.2 Employee Development
Education and Training
Offering employees diverse learning and
development programs provides the driving
force for innovation and growth. All employees
must receive 12 hours of orientation training
when they first report to work, which covers
company introduction, employee benefits,
labor safety and health, ISO education, and
common legal knowledge. Some professional Internal training session
workers will receive another eight hours of
professional training. In 2008, total employee training amounted to 364,594
hours, averaging 21 hours per employee as compared to 16 hours per
employee in 2007.
Total hours of training Training curriculums
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2009 Corporate Social Responsibility Report
Diversity Development
We would train outstanding employees to become in-house instructor
so employees can learn from each other while the company saves costs.
We would also invite outside instructors to give training courses to hone
the professional skills and knowledge of employees. Our management is
required to take management skill training in addition to general education and
professional knowledge and skills to enhance their management knowhow and
communication capability.
We would also invite professionals from different walks of life to give
speech from time to time so that our employees not only possess professional
knowledge but also are also well-rounded in other aspects of life.
Managers and workers attending an internal activity together
 2009 Corporate Social
Responsibility Report Social Policy

5.2.3 Wages and Benefits

Employee Welfare
Writers and celebrities are invited to give speech
We formulate the employee welfare system and establish an Employee Welfare
Committee in accordance with the internal Employee Welfare Regulations. The
Employee Welfare Committee is composed of worker representatives and holds
meetings on a regular basis to discuss issues relating to employee welfare.

We have built the facilities of employee cafeteria, employee dormitory, reading

room, infirmary, billiard room, gym, basketball court, tennis court, and Internet café
to provide employees with a convenient and balanced work environment. Other
employee benefits include: group insurance, labor and health insurance, medical
insurance, money gifts for the occasions of birthday, childbirth and wedding,
condolence payment in case of injury or funeral of family members, performance
bonus, year-end bonus, periodic physical check-up, travel subsidies, dinner
gathering subsidies, stock bonus, group activities, cultural activities, and company-
wise travel or activities. We have union at every plant or hold regular labor-
management meetings to listen to the views or suggestions of employees and take
them into consideration when we formulate employee policies.
MSI Computer MSI Electronics
Item MSI
(Shenzhen) (Kunshan)
Employee benefits surpass Employee benefits Employee benefits
the regulatory requirements, comply with regulatory comply with regulatory
including stock bonus, travel requirements, including requirements, including
allowance, dinner gathering, festival subsidies, festival subsidies,
Employee year-end party, festival dinner gathering, year- dinner gathering, year-
wages and subsidies, medical insurance, end party, medical end party, medical
welfare system group activities, cultural insurance, group insurance, group
activities, internal publications, activities, cultural activities, cultural
and counseling service. activities, internal activities, internal
publications, and publications, and
counseling service. counseling service.
1. Labor-management meetings 1. Union 1. Union
2. Employee communication 2. Employee 2. Employee
Employee sessions communication communication
communication 3. Employee suggestion box sessions sessions
channels 4. Employee complaint hotline 3. Employee 3. Employee
5. Employee discussion zone suggestion box suggestion box
4. Complaint hotline 4. Complaint hotline
Employee Wages and Welfare System

34

Our employees in each plant would organize a variety of in-house social groups
for, such as horticulture, basketball, yoga, photography, mountain climbing, table
tennis, jogging, bicycle, badminton, softball, swimming, and golf. We will hold
regular classes to give employees the chance to take exercise and learn more skills
and crafts. The in-house social groups would also hold indoor and outdoor activities
from time to time, inviting employees and their families to attend.
Employees practiced table tennis against Professional make-up class
each other
Health fitness and exercise Professional instructor teaching the correct
yoga postures
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2009 Corporate Social Responsibility Report
5.2.4 Health, Safety and Risk Management
Providing a safe and cozy work environment is our basic commitment and
assurance to employees. Our plants in Taipei, Baoan (Shenzhen) and Kunshan
have all passed ISO 14001 and OHSAS 18001 certification. We have an
internal audit team made of professional personnel to conduct internal audit
periodically each year and we invite impartial third party to conduct external
audit. We will hold meetings to discuss the audit results and take necessary
improvement or corrective actions to ensure the health of employees and
provide a safe work environment.
We have cafeteria and café set up inside each plant to save employees time
to dine outside, curtail unnecessary risk of traffic accident, and provide our
employees with wholesome, nutritious and delicious meals. The prospective
cafeteria contractor must pass certain qualification and selection procedure,
and the finalist will be chosen by the Employee Welfare Committee in
open voting. The cafeteria contractor must meet all sanitation and health
requirements of the government and we would spot check food preparation
and send the prepared food to testing from time to time to ensure the health of
employees.
Qualified kitchen staff preparing food for in-house cafeteria
 2009 Corporate Social
Responsibility Report Social Policy

Workplace Injury
We saw a rising trend in work injuries in 2008. An analysis of the reasons
finds that because the plants hired more new workers in 2008 to meet the
needs of increased capacity and some new workers had not developed enough
safety consciousness, hence resulting in more workplace injuries.

To effectively reduce workplace injuries and protect worker safety, we have

stepped up safety training and assigned more staff to patrol the work areas.
We will continue to propagate occupational safety and build the safety culture
throughout the company as we endeavor towards to goal of zero-accident
workplace.
Security guards in action to practice fire Firefighters demonstrate the use of fire hydrant
rescue

Statistics of Workplace Injuries, 2006-2008

Fire Drill
We conduct fire drill covering fire safety equipment, fire alarm and personnel
each year. We also set up emergency response team by department and plant
location. Besides the daily production area and office area, we will gradually
include dormitory area and night-shift personnel into the fire drill. The fire drill
allows personnel to practice fire response and get familiar with the use of fire
extinguishers.
Employees evacuating to safe places in an
orderly fashion
7S Program
We have been promoting the 5S program (seiri (tidiness), seiton (orderliness),
seiso (cleanliness), seiketsu (standardized clean-up) and shitsuke (discipline))
for a long time and started the promotion of 7S program (tidiness, orderliness,
cleanliness, standardized clean-up, saving energy, and safety). It is hoped that
the practice of 5S and 7S activities will imbue in employees the concept of
autonomous management and total participation, thereby enhancing their work
efficiency, reducing the incidents of workplace inquiry and ensuring the safety
and sanitation of the work environment.

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 2009 Corporate Social Responsibility Report

Environmental Testing
We have wastewater treatment system installed in all plants to process the
discharge of wastewater produced inside the plant. To ensure that wastewater
discharge will not produce significant impact on the local environment, we
conduct wastewater testing periodically. In 2008, the MSI Computer (Shenzhen)
plant had one incident where the effluent tested exceeded the discharge
standard. For this, we undertook ozone treatment and the effluent met the
discharge standard in the second testing.

To ensure the health of employees, we also conduct water quality, noise and
air quality testing inside the plant on a regular basis. All of the test results in
2008 met the regulatory standards.

Employees eagerly participating in blood donation drive “Healthy Workplace” Certification

5.2.5 Employee Health
In 2008, we applied for the certification of “healthy workplace” from Taiwan’s
Bureau of Health Promotion, Department of Health in 2008 and were certified.
To care for the health of our employees, we sponsored a series of health
checkup activities, including pap smear, mammogram screening, hepatitis B
vaccination, liver ultrasound for hepatitis B, and oral health examination. We
also organized two blood donation drives at the Taipei plant in January and
August 2008 respectively and collected altogether 266 bags of blood.

Many modern people have the problem of three highs (high cholesterol, high
liver indices and high triglyceride). So we held physical fitness and weight loss
classes inside the plant, inviting dietitians to give lessons on correct diet plans
and weight loss programs. Coupled with proper exercise, many employees
were able to lose weight and become healthier. Internal blood donation drive Offer quit smoking clinic to bring
employees healthier life

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 2009 Corporate Social
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5.3 Suppliers 5.3.2 Supplier Quality Management

To make sure that the materials supplied by our suppliers are up to standard,
5.3.1 Supplier Policy all new suppliers must pass the assessment of QSA and the purchasing
Every electronic product is made of several hundred or even several department. A new supplier is first assessed with respect to its purchasing,
thousand parts. Poor quality parts or disruption of parts supply would cause quality and engineering capabilities, and then subject to an onsite audit by an
serious problem in product delivery. Thus supply chain management is a critical audit team composed of MSI personnel before it is included in the approved
part of business operations. We have an internal evaluation team set up to supplier list.
assess whether a new supplier meets our requirements and the new supplier
must pass the assessment to be included in the approved supplier list. Supplier Quality Management Process
For the sake of protecting customers’ interests, staying in line with
international trends and regulatory requirements, and reducing supply chain
risk, we formulate a supplier management policy, enter a contract with our
suppliers, carry out questionnaire assessment to ensure that a supplier meets
the requirements on the issues of quality, delivery, finance, environment, safety
and health, human rights, ethics and social responsibility, and implement
supply chain management.

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5.3.3 Supply Chain Risk Management
To implement the Electric Industry Code of Conduct (EICC0, ensure that all
MSI suppliers meet the requirements for workplace safety, all employees are
treated with respect and dignity, and the product process is environmentally
responsible, we ask all of our suppliers to sign a EICC Agreement starting at
the end of 2008. In the future, we will gradually include the EICC standards
on labor, ethics, health and safety, and management into the audit criteria
in addition to the existing audit criteria on supplier’s finance, quality and
environmental practice. Starting in 2009, all suppliers must fill out a self-
assessment questionnaire. We will carry out analysis and ranking based on the
self-assessment questionnaires and conduct necessary audit and risk control.
Supplier Relationship Management Timetable
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2009 Corporate Social Responsibility Report
5.3.4 Contractor Management
Corporate social responsibility not only addresses employees, shareholders and
investors, suppliers, customers and consumers, contractors are also one of the important
stakeholders. Only with contractors’ assistance and cooperation can we provide our
employees with a safe and cozy work environment and create corporate profit and
quality products.
For contractor work, we would carry out necessary operational control and risk control
for elevated, hoisting, firing, confined space and electrical works. When signing contract
a contractor, we would provide documented descriptions of our operating rules and
procedures and ask the contractors to sign a letter of undertaking to comply with those
rules and procedures. Contractor’s personnel must possess the required credential
or license and wear suitable protective gears to work at the site, and contractors must
implement proper safety and protective measures at the worksite. MSI on its part would
conduct routine checks, autonomous maintenance and audit, and would enlist the
service of qualified vendor to perform equipment servicing and repair on a regular basis.
When we invite bid for cafeteria contractor, the
bidders must show business license and document
evidencing that they are free of major worker
safety or hygiene problems. Cafeteria staffs are
required to undergo physical examination regularly.
We would also provide cafeteria contractors with
safety and hygiene training regularly to make sure
they are kept informed of the latest news and
regulations and received necessary training. The
food samples are typically kept for three days. MSI
ESH committee would spot check the cafeteria
and the food provided from time to time, send the
sampled food to SGS for testing, and announce
the testing results to make sure cafeteria food
eaten by employees is wholesome and safe.
Contractor working
 2009 Corporate Social
Responsibility Report Social Policy

6 Social Welfare
Social Policy
The relationship between a business and the community or the society is
like that between plants and soil. A business is like a plant growing in soil.
Without fertile, healthy soil, the plant would not flourish. On the other hand, soil
without plants growing on it will be just a stretch of barren land without signs
of life or vitality. Such intimate relationship of mutual influence between plant
and soil could be drawn parallel to the relationship between the development
of a business and the community. MSI fully understands such relationship and
has been operating with the heart of appreciation and gratitude towards the
communities that support our business operations, be it in Taiwan or in China. Chairman Hsu (right) presents supplies to the Volunteer Police Squad of
Zhonghe Precinct
We will always render assistance and support to the best of our ability to
activities that benefit the community and the society.
Global Donation Program – “Love with the Wind”
6.1 Community Giveback The rapid evolvement of information technology boosts the use and
prevalence of computer. But as the rich-poor divide widens around the world,
MSI is headquartered in Zhonghe City, Taipei County, Taiwan. Zhonghe City school kids in some regions and countries are left behind in this wave of
is an early development with dense population and narrow streets. To help information technology advancement due to their country’s economic situation
alleviate the traffic jam and reduce the incidence of traffic accidents during or family income level.
peak hours, we have been asking our security guards to assist in traffic control
at the nearly intersections to reduce traffic congestion and the chance of traffic MSI recognizes that digital divide not only undermines a kid’s right to
accidents. education, it could also deprive a kid of his or her future. Guided by our belief
in giving back to the society, we embark on a global donation program named
We have adopted trees along Qiaohe Road in Zhonghe since 2001 in the “Love with the Wind” in Taiwan, China, Poland, Ukraine, Turkey, Russia,
hope to help improve the quality of surrounding environment and the living Vietnam, Philippines, Indonesia, Korea, and India. It is hoped that this program
standard of the local residents. We are a long-term sponsor of the voluntary will help children get a better sense of computing experience and call public
police squad and fire brigade in Zhonghe district and the local Bureau of attention to this issue to invite others to follow in our footsteps.
Environmental Protection, providing them with supplies. We also make
emergency donation to impoverished local residents. These community
supports are tokens of our gratitude and giveback to the Zhonghe district.

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 2009 Corporate Social Responsibility Report

Taiwan
With heart-felt gratitude and the thought of giving back to our hometown,
the first wave of “Love with the Wind” program started in Taiwan. Working with
the Taiwan Digital Opportunity Center (DOC), we identified elementary schools
and junior high schools in remote areas as the recipients of our notebook
donation. This program also responds to the “Reduce the Digital Divide” policy
advocated by the Ministry of Education and Executive Yuan as we aspire to
make a contribution to enhancing the level of education and shortening the
digital divide in remote areas.

Under the “Reducing Women’s Digital Gap Volunteers at Beiyuan Digital Opportunity Center
Program” of Tabei Digital Opportunity Center, new use netbooks to give Internet security and
immigrant moms and their kids come together to information literacy training
learn to use computer

Chairman Hsu (right) attends the Computer
Donation Ceremony held by the Ministry of
Education to spread the love of MSI to every corner
of Taiwan
Volunteers at Jiji Digital Center use MSI netbooks
to compile data and create files
Station officer at the Jiji DOC indicates: “We had to borrow computers from
others when we went into communities and schools for promotional activities.
Now we finally have our own notebook computer. It not only helps the
residents in remote areas understand that modern information technology is
everywhere and readily available, it also gives them the chance to experience
the convenience of information access as that experienced by residents in
metropolitan areas.” Station officer at Beiyuan DOC in Donghe Township,
Taitung County comments: “I am really happy to have a mini notebook like this.
It gives students in Beiyuan the opportunity to learn to use such IT equipment.”

The Shuangchi DOC is located inside the Ziyou Elementary School in

Students at the digital center are having fun using a
notebook to get online and search information
Grandmas and grandpas at the Luyeh Digital
Opportunity Center are keen on learning how to use
computer
Hoping Township, Taichung Country. Among the more than 1,000 population
in Ziyou Village, only 4 households have computers that are fairly old models.
Principal Chiang Cheng-wen of Ziyou Elementary School comments: “For
a long time there was no promotion of information education in the tribal
community, let along the application of Internet resources. The outside world
probably cannot image the gap between tribal and urban living!”, and “The
computer donated by MSI is the first computer owned by Shuangchi DOC. It
also brings convenient, modern computer technology to Shuangchi DOC.”

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 2009 Corporate Social
Responsibility Report Editing Principles

Other Parts of the World

We continued our global donation program “Love with the Wind” in China,
Poland, Ukraine, Turkey, Russia, Vietnam, Philippines, Indonesia, Korea,
and India. It is hoped that giving children around the world the chance to use
computer would create infinite possibilities and opportunities for their future.

Volunteers at Shuangchi Digital Opportunity Center Students of Caoling Elementary School continued
teach kids to use computer their computer class in a temporary classroom
during Typhoon Sinlaku

Caoling Elementary School was listed as a hazardous zone in September

2009 in the aftermath of Typhoon Sinlaku. We donated netbooks to Caoling
DOC to help the students at Coaling Elementary School continue their
computer classes without disruption.

Korea: Donate 25 netbooks to Seoul Children’s Home

Donate 3,100 cool looking computer cases to

Vietnam: Donate 40 netbooks for use by handicapped students needy students

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 2009 Corporate Social Responsibility Report

6.2 Charity Donations

A 7.9 earthquake hit Sichuan China on May 21, 2008. The earthquake
affected more than 100,000 square kilometers in area and caused financial
loss in the tune of 800 billion RMB and inestimable number of casualties.
We provided each MSI colleague with home in affected area an emergency
allowance, and in the spirit of compassion and empathy, started a money and
supply donation campaign inside the company. Under the concerted efforts of
everybody, we raised more than 3 million RMB and earmarked the fund for use
in the Sichuan earthquake rescue efforts through the Red Cross.

In consideration that aside from the problems of rescue manpower, material

supplies and transportation, sanitation also presents a pressing problem in
the aftermath of an earthquake. Thus besides giving monetary aid and relief
supply to the disaster-hit areas, we donated another 100,000 RMB through the
Chinese Foundation in China to build environmental lavatories for earthquake
victims in the Mian Chi Village of Sichuan in the hope to help relieve the urgent
“MSI’s Gratitude and Computer Donation” Program sanitary needs and prevent the outbreak of infectious disease in the local
community. The environmental lavatory project hired local residents throughout
to provide immediate job opportunities for the local victims.
“MSI’s Gratitude and Computer Donation Program”
We also worked with the Taipei County’s Bureau of Social Affairs to promote
the Dream Comes True project, through which, we donated altogether 27
notebook computers to the Taipei County Bureau of Social Affairs, Chinese
Youth Peace Corp, The Child Growth Association of ROC, Pingtung Lotung
Physical Handicap Service Association in the hope to convey the love and
caring of MSI to all parts of society.

Provide job opportunities by hiring the locals to build Well-ventilated, natural light and environmentally
environmental lavatories friendly lavatory

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6.3 Corporate Volunteer

The trend of globalization has intensified industry competition and widened
the gap between the rich and the poor. In the case of Taiwan, intense
competition has forced many enterprises to emigrate to China and Southeast
Asia. The direct impact of such development is loss of jobs and growing rich-
poor disparity, which not only affect the finance of individual families, but also
their children’s right to education and opportunity to grow and develop.

In light of the worsening overall economic situation, we plan to start providing

both financial and educational assistance to low-income families in Taiwan
starting 2009. We will sponsor free lunch for the kids of low-income families to
help reduce the financial burden of their parents and make sure children get
sufficient nourishment and stay healthy. On the other hand, we will make use
of our core competency – outstanding personnel and professional knowledge
in computer in our social support efforts. We will organize corporate volunteers
to give children of low-income families free computer lessons as we aspire
to make a contribution to reducing the digital divide and to the future of those
children.

Volunteer preparation meeting

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 2009 Corporate Social Responsibility Report

Supplemental Information 1: Contact Window

This report is issued in Chinese and English version, both can be

downloaded from MSI’s website. We welcome any comment about this report,
and are very interested in receiving feedback from our readers. Please send
comments to below contact person.

MSI
Management System Center
Rene Kao
Address: No.69, Lide Street, Jhonghe City,
Taipei County, Taiwan
Tel: +886 2 3234 5599 #2613
Email: renekao@msi.com.tw

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 2009 Corporate Social
Responsibility Report Supplemental Information

Supplemental Information 2: GRI G3 Content 4.3

4.4
Independent members at the board
Mechanisms for Shareholder/ employee participation
P12
P4
Index 4.5 Executive remuneration and performance P12
GRI G3 Content Index 4.6 Processes to avoid conflict of interest at the board P12
4.7 Process to determine board expertise on sustainability Not available
Categories Activities Page Note 4.8 Mission and value statements P5
1.Strategy and Analysis P8, P14, P16 4.9 Procedures for board governance on management of Not available
1.1 CEO Statement P5 economic, environmental, and social performance
1.2 Key impacts, risks and opportunities P5 4.10 Processes for evaluation of the board’s economic, Not available
2.Organizational Profile environmental, and social performance
2.1 Name of the reporting organization P3, P6 4.11 Precautionary approach principle P22, P28
2.2 Products and/or services P9 4.12 External charters / principles Not available
2.3 Operational structure P13 4.13 Association memberships P18
2.4 Headquarter location P3 4.14 List of stakeholders P4
2.5 Countries in operation P6 4.15 Stakeholder identification P4
2.6 Nature of ownership P6 4.16 Approaches to stakeholder engagement P4
2.7 Markets served P13 4.17 Topics raised by stakeholders P4
2.8 Scale of the organization P6, P7 Economic
2.9 Significant organizational changes P23 EC1 Direct economic value P8, P10
2.10 Awards received P19 EC2 Financial implications due to climate change P25
3.Report Parameters EC3 Benefit plan P34
3.1 Reporting period P3 EC4 Financial government assistance Not Applicable
3.2 Previous report P3 EC5 Entry level Wage (Add) Not available
3.3 Reporting cycle P3 EC6 Local suppliers Not available
3.4 Contact point for questions P46 EC7 Local recruitment Not available
3.5 Content definition P3 EC8 Infrastructure investment and services for public benefit P40
3.6 Boundary of the report P3 EC9 Indirect economic impacts (Add) Environmental P25
3.7 Limitations on the report’s scope P3 Environmental
3.8 JVs, subsidiaries, and outsourcing P6,P7 Disclosure on management approach P22-P29
3.9 Data measurement techniques Not available EN1 Volume of materials used Not available
3.10 Effects of information re-statement Not available EN2 Recycled materials P27
3.11 Changes from previous reports P4 EN3 Direct primary energy consumption P27
3.12 Standard disclosures P44-P46 EN4 Indirect primary energy consumption P26
3.13 External assurance Not available EN5 Energy conservation (Add) P29
4.Governance, Commitments, and Engagement EN6 Initiatives for energy-efficiency and renewable energy P26
4.1 Governance structure P13 EN7 Initiatives for reducing indirect energy (Add) P29
4.2 Indication Whether chairperson is also executive officer P12 EN8 Water Withdrawal P26

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 2009 Corporate Social Responsibility Report

EN9 Effect of Water WithdraWal (Add) Not available LA13 Composition of governance bodies P32
EN10 Water recycled (Add) Not available LA14 Genderpay disparity Not available
EN11 Land assets in sensitive areas Not available (2) Social: Human Rights
EN12 Impacts on biodiversity Not available Disclosure on management approach P32
EN13 Habitats protected or restored (Add) Not available HR1 Human rights clauses in investment Not available
EN14 Strategies for biodiversity (Add) Not available HR2 Supplier screening on human rights P39
EN15 Endangered species (Add) Not available HR3 Training on human rights (Add) Not available
EN16 Greenhouse gas emissions P25, P26 HR4 Discrimination P32
EN17 0ther greenhouse gas emissions P26 HR5 Association and collective bargaining P32
EN18 Initiatives to reduce greenhouse gases (Add) P25 HR6 Child labour P32
EN19 0Zone-depleting substance emissions P26 HR7 Forced labour P32
EN20 NOX, SOX and other air emissions P26 HR8 Training for security personnel (Add) Not available
EN21 Water discharge Not available HR9 iolations of rights of indigenous peoples (Add) Not available
EN22 Waste by disposal method Not available (3) Social: Society
EN23 Significant spills Not available Disclosure on management approach P40
EN24 Movements of hazardous Waste (Add) Not available S01 Impact on communities P40
EN25 Habitats affected by discharge and runoff (Add) Not available S02 Corruption risks Not available
EN26 Environmental impact mitigation Not available S03 Anti-corruption training Not available
EN27 Packaging materials P24 S04 Actions against corruption Not available
EN28 Non-compliance sanctions P37 S05 Lobbying P13
EN29 Environmental impact of transport (Add) Not available S06 Political donations (Add) P13
EN30 Environmental protection expenditure (Add) Not available S07 Anti-competitive behaviour (Add) Not available
(1) Social: Labor Practices and Decent Work S08 Regulatory non-compliance sanctions P13
Disclosure on management approach P32 (4) Social : Product Responsibility
LA1 Breakdown of Workforce P32 Disclosure on management approach P22
LA2 Employee turnover P32 PR1 Health and safety impacts along product life cycle P28
LA3 Benefits to full-time employees (Add) P34 PR2 Non-compliance With health and safety standards (Add) P37
LA4 Employees With collective bargaining agreements Not available PR3 Product information P9, P20-P21
LA5 Minimum notice periods Not available PR4 Non-compliance With product information standards (Add) Not available
LA6 Workforce in joint health committee (Add) Not available PR5 Customer satisfaction (Add) Not available
LA7 Occupational injuries and absenteeism Not available PR6 Communication programmes Not available
LA8 Training on serious diseases Not available PR7 Non-compliance in marketing practices (Add) Not available
LA9 Trade union agreements on health (Add) Not available PR8 Complaints regarding customer privacy (Add) Not available
LA10 Training per employee P33 PR9 Product non-compliance Not available
LA11 Programs for lifelong learning(Add) P33
LA12 Career development (Add) P33

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