Corporate Social Responsibility and Credit Management

May 2007

Keynote Speaker： Tom Chang

　 VP, CCIS

CEO, CCIS (Beijing) CEO, CCIS (Shanghai)

CSR and Credit Management

C C I S

CSR and Credit Management

CSR & Credit Management

Key Key PPoints of oints of Credit InvestigationCredit Investigation

( Five Cs )( Five Cs )

CSR and Credit Management

Key Points of Credit Investigation

CHARACTER

CAPITAL

CAPACITY

CONDITION

COLLATERAL

FF II VVEE

CsCs

CSR and Credit Management

Key Points of Credit Investigation

CHARACTER

CAPITAL

CAPACITY

CONDITION

COLLATERAL

CHARACTER ❖History ❖Proprietors❖Affiliates ❖Management & Administration

FF II VVEE

CsCs

CSR and Credit Management

Key Points of Credit Investigation

CHARACTER

CAPITAL

CAPACITY

CONDITION

COLLATERAL

CAPITAL ❖Alteration of Capital

❖Capital Relationship

FF II VVEE

CsCs

CSR and Credit Management

Key Points of Credit Investigation

CHARACTER

CAPITAL

CAPACITY

CONDITION

COLLATERAL

CAPACITY❖Equipment Facilities

❖Employees

FF II VVEE

CsCs

CSR and Credit Management

Key Points of Credit Investigation

CHARACTER

CAPITAL

CAPACITY

CONDITION

COLLATERAL

CONDITION

❖Bank Reference ❖Industry Trend ❖Current Operation ❖Prospect

FF II VVEE

CsCs

CSR and Credit Management

Key Points of Credit Investigation

CHARACTER

CAPITAL

CAPACITY

CONDITION

COLLATERAL COLLATERAL ❖Accredited Terms ❖Guarantor Background

FF II VVEE

CsCs

CSR and Credit Management

CSR & Credit Management

Credit for SustainabilityCredit for Sustainability

CSR and Credit Management

Credit for SustainabilityCredit for Sustainability

Economy Environment Society

CSR and Credit Management

Credit for SustainabilityCredit for Sustainability

Economy Environment Society

【 Company Governance】

Reasonable structure means

certain independent directors in

board, considering of sex,

nationality, and union delegate,

etc.

Possessing board with reasonable structure

CSR and Credit Management

Credit for SustainabilityCredit for Sustainability

Economy Environment Society

Related financial report was

audited by Certified Public

Accountant.

Possessing effective

audit system

【 Company Governance】

CSR and Credit Management

Credit for SustainabilityCredit for Sustainability

Economy Environment Society

Possessing memberships in related

association (such as industry association),

domestic or international organizations,

such as Board of the UN Global Compact,

CBCSD,Committee of Corporate Citizenship,

Environment Science Association and

CSC9000T.

Possessing member-ships in related

association

【 Company Governance】

CSR and Credit Management

Credit for SustainabilityCredit for Sustainability

Economy Environment Society

【 Stakeholders】 Stakeholders include clients, consumers,

investors, employees, community populace,

government and civilian organization, etc.

legal disputes include law cases about leaking

out customers’ privacy and data, blindfolding

clients, blindfolding investors or cooperators,

price-fixing or exclusive dealership depending

on monopoly position, etc.

Legal disputes

with stake-

holders

CSR and Credit Management

Credit for SustainabilityCredit for Sustainability

Economy Environment Society

【 Stakeholders】

In serving terms, related

products or services will exert

a malignant influence on

consumers’ safety and health.

Malignant influence on safety

and health

CSR and Credit Management

Credit for SustainabilityCredit for Sustainability

Economy Environment Society

【 Stakeholders】 Making relevant quality guarantee standard

for safety and perfect, protecting rights of

consumers/clients,such as perfect after service

system, national safety of product certificate,

CCC, UC safety of certificate, S-Mark safety of

certificate(Argentina), CSA certificate (Canada),

FCC certificate (US), PSE certificate (Japan),

CB internationalcertificate, C-Tick certificate (Australia).

Making relevant quality

guarantee standards

CSR and Credit Management

Credit for SustainabilityCredit for Sustainability

Economy Environment Society

【 Commercial

Ethics】

In economic disputes, such

as corruption and bribery.

In economic disputes

CSR and Credit Management

Credit for SustainabilityCredit for Sustainability

Economy Environment Society

【 Commercial

Ethics】

Infringing others’ intelligence

property rights.

Infringing intelligence

property rights

CSR and Credit Management

Credit for SustainabilityCredit for Sustainability

Economy Environment Society

【 Commercial

Ethics】 Related products or services

disobeying ethic principle or

social welfare: correlation with

drugs, alcohol and tobacco,

firearms,eroticism,gambling,etc.

disobeying ethic

principle or social welfare

CSR and Credit Management

Credit for SustainabilityCredit for Sustainability

Economy Environment Society

【 Environment Management】

Building environment

management systems: such

as ISO14000 certificate, EMS.

Building environment management

systems

CSR and Credit Management

Credit for SustainabilityCredit for Sustainability

Economy Environment Society

【 Environment Management】

During investment or new technology

development, implementing active

environment strategy: such as

Environmental Impact Assessment,

Energy-Saving Design， Environment

Protection Material and Technology,

callback mechanism.

Implement-ing active

environment strategy

CSR and Credit Management

Credit for SustainabilityCredit for Sustainability

Economy Environment Society

【 Environment performance】

With accident or hidden

trouble.

With accident or

hidden trouble

CSR and Credit Management

Credit for SustainabilityCredit for Sustainability

Economy Environment Society

【 Sustainable Development Report】

Coming out with sustainable

development reports: such as

environment report, social

report, corporate citizenship

report, corporate social

responsibility report, etc.

Coming out with

sustainable development

reports

CSR and Credit Management

Credit for SustainabilityCredit for Sustainability

Economy Environment Society

【 Commonweal Philanthropy】

Taking part in commonweal

activities, supporting social

development and future: such

as commonweal donation,

commonweal advertisement,

employee volunteer service.

Taking part & supporting

commonweal activities

CSR and Credit Management

Credit for SustainabilityCredit for Sustainability

Economy Environment Society

【 Labor Relation】 If there are disputes or law cases, such as labor

dispute: for example, discrimination in employment

(including application), dismissal or promotion; in defer-

ence to rights and individual belief of migrant workers,

children,women,children,pregnant women,handicapped,

equal rights on training, salaries and welfare; system for

confirming actual employee’s age; special treatment for

junior workers (Including overtime and night shift limit-

ation, regular medical examination, etc.) ; special treat-

ment for pregnant women.

Disputes or law cases on labor

controversy

CSR and Credit Management

Credit for SustainabilityCredit for Sustainability

Economy Environment Society

【 Labor Relation】

Work accidents, occupational

disease and working accident.

Work accidents

CSR and Credit Management

CSR & Credit Management

CSRCSR RResearch on esearch on

EEnterprises in Chinanterprises in China

CSR and Credit Management

CSR Research in China

Responding to the economic laws,and keep normal market order.

In order to solve the employment problem, the health wearfare and taining development of employees, don’t escape or dodge tax, respect and protect consumers.

Focusing on environment protection. In general, the enterprises in China limited the liabilities to enterprise and society to economic and law, didn’t improve to the liabilities of morality and charity which was expected by the public.

【 Cognition of CSR】

CSR and Credit Management

CSR Research in China

Most of enterprises thought practice in workplace, influence by environment, company governance/ community problem are related with CSR. It showed that enterprises have certain cognition about corporate social responsibility. Mainland large enterprises and international companies are main undertakers; only few enterprises establish special popularity departments or social responsibility departments

Most of companies did not establish the sense of corporate social responsibility, they only focused on Profit maximization.

【 Industrial characteristics of CSR】

CSR and Credit Management

CSR Research in China

42% would like to invest in this listed company after reliazing the high quality information of listed company on ESG. 60% would like to invest in funds or management funds marked with SRI index.

44% would like to invest in high performance companies on the area of management, environment, society and working place.

【 Investment Activities of Financial Institutions in China】

CSR and Credit Management

CSR Research in China

【 Investment Activities of Financial Institutions in China】 28% would not like to invest in tobacco, gambling and alcohol drinks corporations.

48% has the will to invest in high performance company of management.

56% has the will to invest in high performance company of environment.

40% has the will to invest in well managed company in

working place.

CSR and Credit Management

CSR & Credit Management

ConclusionsConclusions

CSR and Credit Management

～ Thank You～

http://www.credit.com.tw