Labor Index

Human Right Development

Respect for human rights is a key aspect of sustainable business. LITE-ON firmly believe that successful global business expansion requires global responsibility. With this aim, LITE-ON is committed to becoming an economic and social asset to every community where we do business, and we hold similar expectations of our supply chain. To respect the human right in operation and supply chain, LITE-ON adopted the obligation of RBA (Responsible Business Alliance) as management framework to facilitate human right in accordance with the guiding principles implement the "Protect, Respect and Remedy" .

To verify the sufficiency,effectiveness and applicability of LITEON's CSER management system, and to examine the strategy and policy of a corp, we build up internal RBA audit process. The process includes the resposibility, process ,the regulation and the frequency of audit, report and the improvement tracking.

LITE-ON adapt the obligation and self-examine monthly through each factory, and found RBA Comittee on the site of Guangzhou, Dongguan and East China. Cross-factory audits are arranged and practiced yearly and to ensure the standards are met. If any item don't conform the requirement, we would ask them to improve with a specific deadline. LITE-ON has set up CSER project organization, accord to the RBA audit process, internal and expernal audit would be performed regularly, and report to the management meeting to ensure the resonsibility of LITE-ON.

Due Diligence on Human Rights

A process of building internal and external awareness and understanding of where our activities may have the potential to intersect with human right was build; three due diligence steps were outlined as evaluation framework, assessment and improvement for LITE-ON to identify, prevent, and mitigate impacts related to human rights.

  1. Evaluation Framework
    To identify, prevent, and mitigate human rights impacts from LITE-ON and its supply chain, two frameworks of risk evaluation were launched for both employees and suppliers in terms of RBA. For employees, LITE-ON conducted regularly the risk evaluation for each production site based on two risk matrix of the occurrence (O) and severity (S) that can be quantified. Regarding the suppliers, a survey and audit form in the field of human rights was established based on RBA to understanding of what significant risk may cause from supply chain.

  2. Assessment
    2.1 Operation
    There are two approaches to assess human rights risk of employees, including self-assessment and third party audit.
    2.2 Supply Chain
    LITE-ON defined a basic guideline applicable to suppliers in accordance with the RBA Code of Conduct and asked suppliers to sign the written management undertaking guaranteeing that they would strictly comply and take social responsibilities. We also stipulated the RBA audit regulations for suppliers. The essential elements of evaluation include: no child labor, protection of human rights, no discrimination, equality of treatment, legal working hours and pay, and environment management.

3. Improvement
By integrating the finding of human rights assessment into relevant functions and processes, LITE-ON implemented the improvement for taking appropriate actions to mitigate human rights risk. This step allows LITE-ON to tracking the effectiveness of the response and communicating on actions to address impacts associated with human rights.

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Workforce Structure

As at the end of 2017, LITE-ON had 51,879 employees worldwide; 55.8% of whom were male and 44.2% were female. There were 5,042 employees in Taiwan, while the remaining 46,837 were located throughout Mainland China and other overseas (including Thailand, Brazil, Vietnam, Malaysia, Singapore, Europe and USA etc.). 99% of employees were in Asia.
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Employee Retention

LITE-ON offers a comprehensive range of training courses and compensation and benefits to encourage employees pursue self improvement and achieve career growth. Job descriptions given during interviews will remain consistent after recruits report for work. Managers and human resources officers will also try to reduce new hire turnover by interviewing new employees to find out how they are settling into their positions. New employees will be given assistance in the form of education and training to help them fit into the corporate environment. When an employee submits a resignation, the human resources department will conduct an interview and analyze key factors in retention and resignation in order to improve the retention rate.

In terms of compensation packages, LITE-ON has designed regular compensation reviews to ensure the company is able to retain talent while ensuring all employees receive above-average compensation. LITE-ON also encourages individual departments to implement reward programs to boost morale and improve business performance, effectively creating a win-win situation.

In terms of talent management strategies, LITE-ON has implemented a human resources management blueprint and an education and training system to provide courses on core management competencies and essential professional skills. These programs are intended to broaden the horizon for employees, enhance management knowledge and skills for managers, develop a common management language, create a healthy corporate culture, and lay the foundation for sustainable development.

Employee Turnover Rate
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Employees on child care long-term leave between 2014 & 2016 (Taiwan)

LITE-ON offers a variety of assistance to employees with child care needs, such as the option to take extended leave, choose different career paths, and receive subsidies. A total of 64 employees applied the child care long-term leave, and 85% of those who did come back to job in 2017. This is a testament to how employees approve of LITE-ON's policies.

Personnel Recruitment

LITE-ON utilizes a broad variety of means to recruit top talents to support its operating strategies, and in return provides them with promising career paths. Some of the company's recruitment channels include collaborative programs with universities and colleges, summer internships (in Taiwan), the government's employment promotion programs, and R&D substitute service candidates. The new hire rate below is calculated as: (monthly average number of new employees in 2017) / (sum of month-end employee count from Jan to Dec/12) x 100%.

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Employee Care ▸

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