Sustainable Development

From the President

To all partners and friends with an interest in the sustainable development of Realtek:

2020 marked the 34th year of Realtek’s establishment. Our gratitude goes out to all of our partners and friends for their continued interest, support, and backing of Realtek over the years, and for assisting with the multifaceted growth and development of Realtek.

Realtek understands the interplay between business operations and the pulse of the international community. Therefore, we continue to develop sustainability management policies linked to domestic and international standards to enhance corporate ethical management and promote common prosperity. The 2020 CSR Report focuses on CSR issues, responds to global sustainability goals, and emphasizes the expectations of internal and external stakeholders. We not only adopted GRI Standards for the preparation of the report, but also adopted the AA1000 accountability principles defined by the global non-profit organization ‘AccountAbility’ to verify the report’s contents and ensure that we provide accurate, comprehensive results to our various partners.

In 2020, COVID-19 presented a new global challenge. As the pandemic unfolded, Realtek not only actively responded with a diverse range of measures and management, but also steadily and proactively provided assistance and pandemic prevention materials to needy sectors of the society. We wholeheartedly thank all of our partners around the world for the cooperation, care, assistance, and encouragement they demonstrated when the pandemic became severe. By joining together to prevent the spread of COVID-19, we maintained a smooth global supply service. We also thank all Realtek employees for working with a common purpose during the pandemic to coordinate with pandemic prevention measures introduced by local governments. Together, we provided secure, trusted, and stable business services to all of our global partners. Realtek is a member of the global community and our entire workforce remains committed to sustainability and fulfilling our duties as a corporate citizen, while simultaneously maintaining powerful bonds with our corporate partners.

Sound Management, Innovation and R&D, and Corporate Governance

Prudent operation management and ethical management form the core foundations of CSR development at Realtek. Since the establishment of Realtek in 1987, we have developed new products and provided customers with the best integrated solutions through innovation and R&D. Our revenues have continued to grow every year thanks to the many market-leading products we have created. 2020 marked another year of growth for Realtek, with consolidated revenue of NTD 77.76 billion for the year. Revenue grew by 28% over the previous year and earnings per share was NTD 17.24. Realtek also continued to garner many major awards and recognition for our innovative products and technologies. After winning both a 2020 Hsinchu Science Park R&D Accomplishment Award and a 2020 Hsinchu Science Park Innovative Product Award, our staff expressed both gratitude for the honors and a commitment to working even harder in the future to produce even better R&D innovations. For 34 years the Realtek management team, together with all professional units in the organization, has adhered to the principles of ethical management in guiding the development of corporate governance and business management. We attach great importance to a business operator’s duty to implement sustainable development, raise information disclosure transparency, comply with laws and apply risk management, uphold shareholder rights and interests, strengthen the function of the Board of Directors, and both respect and protect human rights. At the same time, we openly communicate ESG-related issues with stakeholders. In this manner, we ensure the sustainable development of the company by continuing to enhance corporate governance and ethical management.

Talent Development and Corporate Culture

As a member of the knowledge and technology intensive semiconductor IC design industry, human resources and intellectual property are Realtek’s most important assets and the cornerstone of the company’s development, sustainability, and competitiveness. Realtek has longstanding talent strategies and planning in place that enable us to retain a workforce that can respond to short, mid, and long-term development needs. Our human resources policy is based on valuing and respecting talent. Safety and happiness are as important as work quality, and are emphasized along with learning and development for better performance. Innovation and service create total value for all. The Realtek Corporate University offers five academies with different training programs for the continued development and reinforcement of organizational learning and competitiveness. Work and lifestyle improvements include offering the Realtek Employee Care Center, which combines various employee welfare benefits to create a friendly environment that promotes organizational action and teamwork. We also established the Occupational Safety and Health Center for employee care services and environmental testing, in order to build a safe and reliable work environment. Realtek focuses on future organizational growth and makes preparations to ensure robust development and innovation. In 2020, we started construction of the third office in the Hsinchu Science Park to accommodate more employees as the company continued to grow. We recognize that creating an R&D and innovation base, actively developing talent, and building team rapport are at the core of organizational development. We therefore make significant effort in developing human resource management strategies at each level of the organization to ensure talent sustainability.

The corporate culture of Realtek is defined by self-confidence and trust in people, teamwork, innovation, and vitality. Self-confidence originates from professionalism, while trust in people derives from sharing, belief in the team, and helping others. Teamwork comes from coordinating with your team spontaneously, and offering support of your own volition. Innovation arises from leadership and breakthroughs that create new value, new fields, and new opportunities. Vitality is about proactive service and passion. We believe that our corporate culture provides consensus on direction of development and successful collaboration within the organization. Therefore, it is incorporated into every business activity with full participation by everyone, and continues to create unique, suitable competitive advantages

Going Green through Product Responsibility and Environmental Protection

Realtek participates in global environmental issues by formulating environmental sustainability policies. We gather resources and implement diverse measures to make systematic plans for developing innovative green products, mitigating climate change, conserving water, and managing energy. To uphold sustainability within overall operation processes, we constantly make improvements to environmental management and encourage all employees to participate in advancing product quality, environmental protection, as well as occupational safety and health, thereby meeting the requirements of various international standards such as ISO and OHSAS 18001.

In terms of green products, Realtek attaches great importance to the deployment of green energy concepts from the R&D design process, implements our expectations and commitments for environmental protection in the innovation of Integrated Circuit design, and improves product durability to reduce the use of resources. Through these measures, energy-saving and carbon-reduction are carried out in the best practical way. In the face of product innovation and performance, as well as the pursuit of steady growth and profitability, Realtek will continue to implement CSR in the R&D and supply chain management. We will further elaborate on our achievements in the following chapters.

To control Greenhouse Gases (GHG) emissions, since 2019 we have conducted annual GHG inventories and proactively conducted GHG management to stay on top of the actual carbon emission situation. For water and electricity, we set targets to reduce daily usage as well as evaluate the effectiveness of our efforts and formulate improvement plans to enhance our environmental protection. We also engage in advocacy, education, and training on environmental issues. Consensus on environmental responsibility is achieved through systematic management aimed at realizing environmental protection and sustainability. In Chapter 3 we give more details.

Social Care and Sustainability – Common Prosperity with Global Society

Fulfilling corporate citizenship is one of Realtek’s established business goals. Our efforts in social care target the following six items: social care education for employees, disadvantaged groups, emergency donations and assistance, academic research, children’s development, and special projects. These encompass a variety of requirements from multiple aspects. Realtek is continuing to integrate our resources and manpower in support of social engagement.

To effectively implement social care and sustainability, Realtek combines its own advantages and continuous learning from all walks of life. Through cross-industry collaboration, we jointly exert the power of social responsibility across groups and corporations. On October 31st, 2020, we joined the Liver Disease Prevention & Treatment Research Foundation, Longshan Temple, and Yuan High-Tech to offer free hepatitis and liver cancer screenings. Besides raising awareness of liver health, we provided professional health checks with reports to the more than 8,000 participants. People were grateful for the health promotion and liver disease prevention benefits. Having an understanding of people’s expectations and requirements allows Realtek to define and develop a clearer CSR roadmap. An appreciation for the importance of our responsibilities ensures even greater rigor in each area of development. Global society and local communities are both important to Realtek. We will continue to build our vision for sustainability and corporate social responsibility through concrete actions.

We thank all of our business partners for coming together to build a CSR ecosystem that supports sustainable development worldwide through substantive action. Our thanks also go out to our friends and partners in the industry for their continued interest in our development. Your interest, support, and care help drive the development of CSR at Realtek.

Realtek’s CSR goals and commitments are as follows:

Commitment to sustainability goals, honesty, and integrity

Implementation of green energy policies and environmental responsibility

Sustainable talent development and a safe environment

Proactive cooperation on service and quality requirements

 R&D and innovation to enrich the world and improve convenience

Warm the hearts of more people through continued progress

We are committed to doing our best on CSR, and to integrating sustainability development thinking into the spirit of everyone at Realtek.

總經理親筆簽名 2017