CSR Presentation. Shyang Hung Cheng Company. Presented by. Lynn Luc. Dec 5th, 2007

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1 CSR Presentation Presented by Shyang Hung Cheng Company Dec 5th, 2007

2 CONTENTS SHC Company History SHC Company History SHC Workforce and Organization SHC Workforce and Organization Working Environment & Management System Working Environment & Management System Human Resources Organization Human Resources Organization Trade Union Trade Union Social, Environmental Affairs (SEA) Social, Environmental Affairs (SEA) Achievements

3 SHC History in Brief SHC started out as a shoes manufacturing for several sporting brands at Duy Hung (SHW) factory, Vietnam. It produced its first adidas shoes the Portland in June 1994 and since became an exclusive factory for adidas. In September 2001, the company had decided to launch an expansion plan to build a new factory and it was completed in September The new facility was named Shyang Hung Cheng (SHC). SHC is also known as Shyang Way (SHW) to its adidas customer. SHC had been certified with ISO 9001, ISO14001 and OHSAS DuyHung Shyang Hung Cheng

4 SHC v Factory Name: Shyang Hung Cheng Industrial Co., Ltd (SHW) vaddress: An Thanh Production Area, Thuan An Town, Binh Duong Province. varea: m 2

5 SHC Workforce THAÙI BÌNH THANH HOÙA NGHEÄAN HAØ TÓNH Expatriate Worker and Staff Total Total Workforce on Nov Females: 89% Males: 11% ,060 10,205 No Province / City Employee Rate 1 THANH HOA % 2 NGHE AN % BÌNH DÖÔNG 3 BINH DUONG % 4 THAI BINH % 6 OTHER PROVINCES %

6 SHC Organization Chart Chairman Rong Shih Tseng President Frank Wu Executive Vice President Tim Hong HR Hien Ha Development Erick Chong Production John Chang Business HS. Park CID Ian Huang

7 Working Environment Production Area

8 Management System ISO 9001 Feb.2005 ISO Feb.2006 OHSAS Feb.2006

9 Human Resources Department Manager Employees Relation Team Employee Resources Team Employee Development Team Employee Reward Team Communic -ation Industrial Relations Recruitment & Selection H.R Planning Training Career Management Non-cash Benefit Pay System HSE / Labour Equal Opportunities Induction Appraisal

10 Trade Union Trade Union Committee was established on October 01, Purposes: To develop a sustainable working relationship between employees and employer & 100% compliance with Local Labor Laws. Currently has 7,588 members.

11 Trade Union

12 HR Training Programs Orientation training for new employees Company policy & procedure Local labor law & Trade Union codes Health, Safety and Environment policy Shoes making techniques Lean production concepts Kaizen activity Communication skills Management skills Plus many more.

13 Communication Channels Monthly newspaper Quarterly magazine Weekly factory assembly Monthly three parties meeting Suggestion boxes Internal bulletin board Employee handbook SEA & Union coordinator committee Collective bargaining agreement Local labor reconciliation council

14 Employee Benefits SHC Night School (fully funded by the company) Meals provided for worker Company shuttle bus Dormitory for supervisor

15 Employee Benefit Employees wedding party Gifts for workers children Soccer match Music program

16 Employee Benefits Weekend Movie Moon festival WOW Coffee shop Outdoor picnic

17 Employee Benefits Tet s gifts for Union member Employee House Visit Sports Day Year End s Festival

18 Health Care: Clinic management system HSE -Health Internal Clinic Computer Management System Individual Employees disease profile Implementing an Occupational Health Procedure : - pre-employment O.H. check -O.H. check before transferred to other departments -regular O.H. check program

19 HSE -Health Health Care: Regular CPR training Annual Health Check

20 Mary Stop International (MSI) 4 years Health Reproductive project HSE -Health Provide training for internal MSI committee Provide free internal and external Reproductive Health Check MSI- Health Reproductive Activities

21 HSE - Health HIV/AIDS Project Enterprise HIV/AIDS Prevention Committee was established on February 27, The main objective: -Promote the awareness & prevention of HIV/AIDS to all employees -Safe sex education (provide free condoms) -Educational posters & leaflets -Regular training SmartWork: HIV/AIDS Education HIV/AIDs Education

22 Occupational Health: HSE - Health Ergonomics Project: to provide a better working environment for all employees. Before Sample trial chair

23 Extraction systems HSE Health

24 HSE Safety Enterprise Labor Protection Council and Network of Occupational Safety and Health Collaborators were established in Fire protection equipment installed throughout the factory. Fire Equipments Location Personal Protective Equipment. Auto Fire Extinguisher

25 HSE Safety Fire drill training for managers and supervisors. Established an internal fire fighting unit. Fire evacuation training to employees.

26 HSE Safety 100% compliance with the HSE standards + Safety guard of machinery

27 HSE -Environment Waste Recycling Waste Water Treatment Plant Waste Co-processing Waste Water Recycling

28 Community Support Promoted awareness in Traffic Safety Regulation Donation to the Housing Charity Program Shoe donation to charity centers in Binh Duong and HCM City areas Health Care Location : Vinh Long Province

29 Community Support Donation to the people of the flooded areas Donation to An Thanh Red Cross Supported the Operation Smile Program. Sponsored the Saigon Children s Charity s - homelesschildren.

30 1. Achieved adidas highest SEA rating 2. Winner of the Corporate Social Responsibility (CSR) 2006 Awards. 3. Achieved The Saigon Times Top 40 Awards. Achievements 4. The Trade Union Committee Excellence Award -from Binh Duong Trade Union Federation 5. Annual Award on Occupational Safety and Health activities from HEALTH MINISTRY. 6. Best Compliance in Health, Safety and Environment Award -from Binh Duong Environment - Labor - Health Center

31 Q & A THANK YOU!!!