Staying Ahead of the Industry: We Develop Our Own CSR Report
Although Taiwan Fu Hsing is not currently required by the Financial Supervisory Commission to provide a corporate social responsibility report, we established an "SER (social and environmental responsibility) Promotional Committee" in 2013 to hold regular meetings that involve relevant commissioners every year, and published the first corporate social responsibility report, which even received SGS certification in 2014. In the future, we will continue to devote our businesses to achieve corporate social responsibility.
Message from Company Management
Sustainable management is a new value that businesses around the world are actively embracing. Being the industry's role model, Taiwan Fu Hsing has the responsibility to cater for the interests of all stakeholders and create long-term, sustainable value for the society in addition to maximizing corporate profits. This is why Taiwan Fu Hsing has taken the initiative to prepare the "2022 Corporate Sustainability Report" as a means to disclose in detail the various actions we took during the year, and are using this opportunity to review our progress and gather suggestions from the public to further perfect our practices.
Considering how the pandemic has reshaped the industry environment, Taiwan Fu Hsing will adapt to the new changes by leveraging its manufacturing and R&D strengths, making flexible adjustments to business strategies, and continuing collaboration with industry leaders. 2023 marked the 66th anniversary of Taiwan Fu Hsing, and we look forward to seeing our 100th anniversary by developing sustainability as a new competitive advantage.
Consistent Performance and a Mind for New Challenges
Taiwan Fu Hsing has been able to maintain production capacity, product quality, and service quality in the last three years despite the pandemic. While threats of COVID-19 and port congestion have dissipated, new challenges such as inflation, volatile exchange rate, and rising cost of materials emerged. Although the Company reported record-high profits once again in 2022, revenues declined slightly, ending the 5-year growth streak. Despite the presence of uncertainties, Taiwan Fu Hsing will actively respond to market changes to secure the organization's growth.
Addition of Southeast Asian Plant to Global Production
In addition to optimizing business performance, we also commit significant efforts into building a corporate governance culture and recognize our responsibilities to cater for the interests of shareholders, customers, and other stakeholders. Taiwan Fu Hsing plans to invest US$45 million into constructing more competitive production facilities throughout Southeast Asia as a long-term solution for issues concerning supply chain, talent recruitment, and taxation. With this investment project, Taiwan Fu Hsing shows its respect for the market and its resolve to connecting with the world.
Diverse, Equal, and Inclusive Workplace
In addition growing business, Taiwan Fu Hsing also recognizes employees as its greatest advantage and is dedicated to creating a safe and friendly workplace, for which it received healthy workplace and Taiwan iSport certifications for yet another year. We have also been a long-time advocate of a diverse, equal, and inclusive work culture, for which we were named Happy Enterprise of Kaohsiung City on many occasions. Having won DEI Diversity for Better Tomorrow Awards in 2022 serves as a recognition for our accomplishment and a reminder to continue creating a diverse, friendly, and open workplace where everyone can perform to their best ability.
Corporate influence for mutual benefits with locals
Water and power shortages have increased in severity to such a degree that everyone is starting to rethink their approaches to addressing the climate challenge. In response to customers' requirements (to forgo all uses of PVC and EPS materials starting from 2023) and tightened government regulations (a greenhouse gas survey must be completed for all subsidiaries of a TWSE/TPEx listed company included in the consolidated financial statements by 2029), Taiwan Fu Hsing not only complies with laws but also conducts greenhouse gas surveys and renews certifications on a yearly basis, so that short-term, medium-term, and long-term reduction measures can be devised for the sustainability of Earth's environment. Furthermore, we promote green packaging and try to reduce carbon emissions from raw materials by exerting corporate influence and guiding suppliers toward achieving the right balance between "profits" and "sustainability."
In addition to implementing green projects, we are equally committed to supporting local development. In 2022, Taiwan Fu Hsing Culture & Education Foundation and the local team in Kaohsiung jointly organized a retro-themed exhibition called "Open the Memory Boxes of Gangshan" in an attempt to present the beauty of Gangshan to a broader audience and explore greater possibilities. This project won PwC Sustainability Impact Awards and Taiwan Sustainability Action Awards. In the future, we will continue paying attention to local needs and commit efforts into creating a sustainable city by promoting sports, education, and arts & culture. The foundation persistently tends to the needs of the local community, and is committed to creating cycles of decency within the society.