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Message from Management Team
Today, the uncertainties of global political and economic status increased while the industry continues to shift. At Darfon Electronics Corp., we actively anticipates global trends, strengthens our core abilities, develops innovative products, creates benefits for shareholders while supporting the growth of environment and society, enhancing the wellbeing of each one involved to pursue a sustainable corporate operation. As for economic performance, Darfon had consolidated sales of NT$17.66 billion in 2017. In profits, with optimized product mix and improved production efficiency, the gross margin continued to thrive. Furthermore, as the PC industry became stabilized, Darfon continues to strengthen its product diversity and strategically focuses on cultivating valuable customers for the peripherals business to achieve goals of harvesting profits and maintaining market share leadership. Technology wise, the company relentlessly strengthens its backlighting efficacy and super slim keyboards’ core competencies. Product wise, Darfon had rolled out various high added-value notebook keyboards with differentiation features and 2-in-1 / gaming keyboards to stay as an industry leader. Moreover, Darfon actively develops new clients and raise the share of sales contributed by high-quality customers to increase its business profits and opportunities in areas such as green and material ones to elevate revenues and profits even further. In the efforts of environmental sustainability, Darfon promotes green product design, green operational management, green supply chain structure, and sets various performance indicators to constantly improve its business and culture. Over the years, Darfon has also been dedicated in creating a happy workplace for its employees by advocating the work/life balance principle and proudly won the Gold Medal of the “Best Employement Award” issued by the Taoyuan City Government in 2016. In addition, Darfon’s employees also actively take part in the community services by collaborating with its parent group in tree-planting events and supporting children in remote regions through book reading activities to give back to the society. Looking forward, Darfon upholds the pursuit of building a socially-conscious and sustainable enterprise in order to create multiple wins for all stakeholders. Darfon will continue to focus on both IT and Green business by strengthening its product competencies and process management. Through the ever-excellent business development and internal management, we anticipate an optimal boost in our economic performance in the future. Here at Darfon, we closely combine the corporate vision with environmental sustainability in our everyday operation to not only generate practical values, but also bring changes to the society to create positive influences to the global supply chain.
Organizational Commitment

To fulfill corporate social responsibility and provide all employees a safe and healthy working environment, we strived to minimize the impact of production on the environment and prevent occupational disasters. To that, we have compiled and followed the following policies:

  1. Meet customer’s needs, care for social groups
  2. Treasure natural resources, protect environment of the earth
  3. Control safety, hygiene, risks, and continue to improve management
  4. Reduce stress on labor/management relationship, protect labor rights
  5. Create corporate values through sustainable operations
Corporate social responsibility

To fulfill corporate social responsibility and provide all employees a safe and healthy working environment, we work hard to reduce the environmental impact contributed by production and prevent occupational accidents from occurring. We have both obtained ISO14001 environmental management system and OHSAS 18001 occupational health and safety management system verifications, and achieved Greenhouse gas reduction targets compared to the previous year’s annual revenue per unit for at least 1% or more. While in the electronics industry, we are committed to implement compliance with the Code of Conduct (EICC) and request the EICC content from all our next level suppliers.

The RBA( Responsible Business Alliance) of the request, and then the RBA(EICC) content to the next level of suppliers.

.Darfon Statement of Conflict Minerals

Concerning the deterioration of society, environment and human rights as a result of the military control over metals like gold (Au), tantalum (Ta), tungsten (W), tin (Sn) (short as 3TG), cobalt (Co) and palladium (Pd) by the Democratic Republic of Congo (DRC) nearby non-governmental military groups. Darfon insists on no use of conflict minerals policy and not to buy from the illegal exploitation of conflict minerals areas. We are supporting and following Conflict-Free Sourcing Initiative (CFSI, http://www.conflictfreesourcing.org) and customer requirements strategies and approaches, which is compliant and compatible with “OECD Due Diligence Guidance for Responsible supply Chains of Minerals from Conflict-Affected and High-Risk Areas”, due diligence on mineral origin and chain of custody.

CFSI’s conflict-free Smelter Program (CFSP) implements 3rd-party audits on smelters and refineries, at the same time, conflict-free minerals from the DRC and neighboring countries are still acceptable. Darfon sources only from publishes compliant or equivalent smelter & refiner lists, thus, its minerals will not directly or indirectly finance or benefit armed groups that are perpetrators of serious human rights abuse and practice.

Supplier Requirement

Darfon communicates the following expectations to its suppliers with respect to the responsible sourcing of minerals:

  1. Darfon suppliers must conduct their operations in a socially and environmentally responsible way.
  2. Darfon suppliers are expected to make sure that the products they are supplying to Darfon are DRC conflict-free and do not contain metals derived from minerals that directly or indirectly finance or benefit armed groups in the Democratic Republic of the Congo or an adjoining country.
  3. Darfon suppliers shall exercise due diligence based on national, international recognized standards and coustomer requirements guidance on the source and chain of custody of these minerals (such as the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas) and make their due diligence measures available to Darfon upon request. These measures shall include the completion of the RBA(EICC)/GeSI Due Diligence Template tool and the support of the RBA(EICC)/GeSI Conflict-Free Smelter (CFS) Program.
  4. Darfon demands compliance with above mentioned policy and approach from all its suppliers, and adopts CFSI Conflict Minerals Reporting Template (CMRT) and package tools or equivalent for minerals due diligence reporting in value chain.
  5. Once CFS program smelter lists are sufficiently available, Darfon suppliers must only accept metals from smelters that have been audited and are deemed compliant by the RBA(EICC)/GeSI Conflict-free Smelter (CFS) Program and customer requirements.
  • Bulletin CSR White Paper report PeriodicallyMoral Standard
  • RBA(EICC)Labor
  • QC080000 ISO14001Environment
  • OHSAS18001Health & Safety
  • ISO9001Management System
Corporate Sustainable Development Promotion Team

Darfon’s board of directors were certified with “Ethical Corporate Management Principles”, “Corporate Governance Principles” and “Codes of Ethical Conduct” in 2014 and founded the corporate sustainable development promotion team in 2016, with position of chairman held by the company president, and vice chairman by the vice president.

Besides setting up members representing various business units and support functions, Darfon also owns consulting members and an executive secretary to collaborate with the management team to determine the company’s operational management strategies and future management development direction. This helps Darfon best focus on economic, environmental and social issues that stakeholders care about, and achieve the goals of corporate sustainable development.

Darfon Corporate Sustainable Development Promotion Team:

BOARD OF DIRECTORS

Position
Name
Education and Experience
Principal Business Activities
Performed Outside Our Company
Chairman
Kai-Chien Su
  • EMBA, National Cheng Chi University
  • Assistant Vice President of BenQ Corporation
  • Chairman/CEO of Darfon Corp.
  • Chairman of Darad Innovation Corp.
  • Chairman of DT Microcircuits Corp.
  • Chairman of Darfon Gemmy Corp.
  • Director of BenQ Foundation
  • Chairman of Unictron Technologies Corp.
  • Chairman of Kenstone Metal Co., Ltd.
  • Chairman of San Jose Technology, Inc.
  • Chairman of Iron Ore Company Ltd.
  • Chairman of Kenlight Sport Marketing Co., Ltd.
Director
Kuen-Yao Lee
  • MBA, Switzerland IMD
  • B.S., Electrical Engineering, National Taiwan University
  • Vice President of Acer PC Product Marketing
  • Director of Darfon Corp.
  • Director of Qisda Corp.
  • Chairman of BenQ Corp.
  • Director of AU Optronics Corp.
  • Director of BenQ Materials Corp.
  • Director of BenQ BM Holding Corp.
  • Director of BenQ BM Holding Cayman Corp.
  • Chairman of BenQ Foundation
Director
Representative of Qisda Corporation Chi-Hong Chen
  • EMBA, National Cheng Chi University
  • EMBA, Thunderbird School of Global Management
  • B.S., Electrical Engineering, National Cheng Kung University
  • Technology Product Center Executive Vice President, BenQ Corp.
  • Director of Darfon Corp.
  • Chairman /President of Qisda Corp.
  • Chairman of BenQ Medical Technology Corp.
  • Chairman of Partner Tech Corp.
  • Chairman of DFI Inc.
  • Director of AU Optronics Corp.
  • Director of BenQ Materials Corp.
  • Director of BenQ Corp.
  • Director of BenQ AB Dentcare Corp.
  • Director of BenQ Foundation
  • Vice Chairman of Alpha Networks Inc.
  • Director of Hitron Technologies Inc.
Director
Representative of Qisda Corporation Jasmin Hung
  • MBA, California State University, Fullerton
  • CFO of Qisda Corp.
  • Director of Visco Vision Inc.
  • Director of K2 International Medical Inc.
  • Director of Data Image Corp.
  • Director of Sysage Technology Co., Ltd.
Director
Tsai Yao Kun
  • Ph.D., Mechanical Engineering. National Chiao Tung University
  • Director / President of Darfon Corp.
  • Director of Darfon Innovation Corp.
  • Director of DT Microcircuits Corp.
  • Director of Darfon Gemmy Corp.
  • Director of Kenlight Sport Marketing Co., Ltd.
Independent Director
Lin, Neng-Pai
  • Ph.D., Ohio State University
  • Chairman of Taiwan Power Company
  • Minister of Public Construction Commission,Executive Yuan, Taiwan
  • Dean of College of Management, National Taiwan University
  • Chairman of Taiwan Sugar Corp.
  • Chairman of Taishin Securities Investment Advisory Co., Ltd.
  • Independent Director of Darfon Corp.
  • Independent Director of Wistron NeWeb Corporation
  • Independent Director of AcBel Polytech Inc.
  • Director of TECO Image Systems Co.,Ltd.
Independent Director
Yu-Tien Li
  • Master of Business Administration, The Wharton school of University of Pennsylvania
  • Master of Computer Science,The Moore School of Electrical Engineering of University of Pennsylvania
  • Asian and Pacific area President of Formica Corp.
  • Executive Vice President of Universal Furniture Ltd.
  • Chairman of Optoma Corp.
  • President of Coretronic Corp.
  • Independent Director of Darfon Corp.
  • Chairman of Treegarden Corp.
Independent Director
Hsiang-Niang Hu
  • Master of Business Administration - Accounting, The State University of New York at Buffalo
  • Manager of Solomon & Co., CPAs
  • Director of Forhouse Corp.
  • Independent Director of Darfon Corp.
  • Partner of Yangtze CPAs & Co.
  • Supervisor of DonPon INDUSTRIAL CO.,LTD
  • Supervisor of Favite, Inc.
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Green Products

On February 13, 2003, European Union executive committee and European meeting resolution passed two environmental protection order: WEEE and RoHS, the other various countries also stipulate their relevant regulations successively.Besides the condition of Quality, cost and lead time, customer also take environmental protection into consideration while purchasing. Darfon launch ' the green product plan ' since January of 2004 to be in the trend of environmental protection with the world.We established trans-departmental ' General Quality Headquarter Team ' for the implementation of the leading factor ' green product plan ', set up the exclusive ' Quality project team’ to assist the pushing of business in every Division at the same time, its member contains all relevant departments. Darfon passed IECQ QC080000 international authentication in October 2007 in coherent our Quality faith of ‘reaching the best’, systematic management Hazardous substances and reach the whole product goal without Hazardous substance progressively.

Energy Management Principle
Why is Considering Aspect Important (Management purpose)
Love the Earth, reduce greenhouse gas emission to reduce impact on the environment, realize energy management system, participation of energy preservation and carbon reduction by all members
Management Policy of the Considering Aspect (Promise or Short, Mid, Long Term Goals)
Our company continues to promote energy preservation and reduction items each year to reach the goal of reducing greenhouse effect and CO2 gas emission, our goal is to reduce at least 1% (Electricity reduced 9% in 2015, down from 2014; 7% in 2016, down from 2015)
Considering Aspect Resource Poured (Measure, Resource (Budget or People or Organization), Organize Management System, Specific Action)
  1. With supplier meetings to kick off supply chain structural carbon examination operation, ask suppliers to protect the Earth together
  2. Invest in energy management system and develop clean production mechanism
  3. Overall greenhouse gas inventory and ISO 14064-1 verification
  4. ISO 14001 environmental management system certified, regularly launch internal and external audits each year for each factory to ensure the management system meets the PDCA continued improvement requirements and verify the effectiveness of management system realization
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