O-Bank's primary stakeholders are employees, customers, shareholders, suppliers, government agencies, the local community, the public, and the news media. The matters they care about are diverse, and have wide-ranging impact. To fulfill its corporate social responsibilities, O-Bank maintains a number of channels for two-way communication with stakeholders, and identifies material topics of concern to stakeholders to set the agenda for key management policies and plans for their execution.
Making reference to the CSR Reports of peer companies in the financial industry, O-Bank has identified employees, shareholders, government agencies, customers, suppliers, the local community, the public, NPOs/NGOs, CSR experts and scholars, artists, media, and labor unions as potential stakeholders. CSR representatives from the Bank's various units have met for internal discussions and redefined the scope of stakeholders to exclude CSR experts and scholars, labor unions, media, and NPOs/NGOs. This decision was based on the dual principles of "relevance to the business of O-Bank's departments, and frequency of contact." In addition, they merged "artists and the local community" into the more broadly defined stakeholder category of "the public," resulting in six major stakeholder categories: employees, shareholders, government agencies, customers, suppliers, and the public.
O-Bank's highest authority for governance is the Board of Directors, which has 15 members with diverse professional backgrounds, skill sets, and industry experience. The directors are responsible for reviewing the company's business plan, any organizational expansion or downsizing, budgets and year-end accounts, appointment and dismissal of key managerial officers, and approval of matters of material importance. Also, in order to ensure sound decision-making and improve managerial and oversight mechanisms, the Board maintains various special-purpose committees, including an Audit Committee, Compensation Committee, Investment Committee, and Corporate Social Responsibility Committee. The purpose of the Audit Committee is to assist the Board of Directors with its supervisory duties. The purpose of the Compensation Committee is to assist the Board of Directors with evaluating and supervising the Bank's overall compensation policy and the compensation of Directors and managerial officers. The purpose of the Investment Committee is to assist the Board of Directors in evaluating and supervising investment quality and reviewing investment plans. The purpose of the Corporate Social Responsibility Committee is to set CSR-related regulations, policy direction, and carry out CSR plans.
To effectively optimize internal controls and put the company on stronger organizational footing, O-Bank has adopted the "three lines of defense" model for effective risk management and control. This approach has entailed the establishment of a self-audit system, a legal compliance system, a risk management system, and an internal control system. In the area of legal compliance, O-Bank adopts an annual legal compliance plan. Under this plan, in addition to reviewing compliance systems, structures, and regulations, the Bank also conducts an integrated inspection of all departments' compliance self-assessments, analyzes reasons for serious compliance failures, and makes suggestions for improvement. In the area of risk management, the highest authority in O-Bank’s risk management organization is the Board of Directors, and below it are the Auditing Department, Audit Committee, Investment Committee, and Compensation Committee. Reporting to the President are the Asset and Liability Committee, Investment Product Quality Evaluation Committee, and Loan Evaluation Committee, which assess the risk of related projects. As for internal auditing, the Auditing Department conducts periodic on-site audits at every unit and also supervises their self-audits. Once each half-year, the chief auditor reports on these matters to the Board of Directors.
To implement ethical best practice, O-Bank has adopted a "Code of Ethical Conduct," a set of "Ethical Best Practice Standards," and a "Handbook for Ethical Corporate Management Procedures and Practices." The Corporate Social Responsibility Committee's Corporate Governance Subcommittee is responsible for the following: adopting and implementing ethical best practice policies as well as measures for preventing malfeasance; ensuring that directors, managerial officers, and other employees do not violate ethical principles; monitoring the effectiveness of the company's ethics standards; and periodically reporting to the Board of Directors. Also, O-Bank has established a Whistleblower System to encourage any person to blow the whistle on any unethical or improper conduct. Under this system, someone who discovers a possible occurrence of crime, cheating, or regulatory violations can report the matter via a "tip box" to the chief auditor. A whistleblower's identity, and the content of his or her report, are kept strictly confidential.
To ensure that all employees comply with the Ethical Best Practice Standards in the conduct of their job duties, O-Bank in 2017 retained a professional from KPMG Taiwan to provide instruction to O-Bank employees on the Handbook for Ethical Corporate Management Procedures and Practices. The purpose of the course, which was completed by 75 persons, was to improve understanding of ethics concepts among risk officers and other employees. Also, O-Bank used its e-learning platform to carry out online instruction and testing of employees throughout the entire company, thus improving all employees' familiarity with ethical best practices, ensuring comprehensive legal compliance, and preventing unethical conduct. The online training was completed by 805 persons, which translates to a participation rate of 100%.
After reorganizing as a commercial bank in 2017, O-Bank's staffing needs increased significantly. At year-end 2017, the Bank employed 904 people. As an equal opportunity employer, we do not discriminate on the basis of gender, age, ethnicity, or other such factors. O-Bank employed equal numbers of men and women in 2017, while women accounted for roughly 48% of management and 47% of all promotions. These figures show that all employees enjoy fully equal opportunities for career development and advancement. In addition, O-Bank employed 11 persons with physical disabilities (1.2% of total staff), which exceeded the regulatory standard. O-Bank also maintains clear regulations against any kind of sexual harassment, discrimination, or threatening behavior, and its on-the-job training programs include courses on gender equality, prevention of sexual harassment, and the needs of disadvantaged persons.
O-Bank's starting salaries are above the minimum required by the Labor Standards Act. In 2017, starting monthly salaries for university graduates hired by the O-Bank Group were 1.6 times the minimum wage, and the Bank makes annual salary adjustments, granting an average raise of 3% in 2017 to 97% of all employees who took part in performance evaluations. Employee benefits are also generous. In addition to providing employees with labor insurance, national health insurance, and retirement pensions as required by law, O-Bank also offers employees and their family members with comprehensive group insurance. Also, O-Bank arranges regular health examinations that exceed regulatory requirements for employees. In 2017, 87.2% of employees took advantage of the health examination program. Living expense allowances include: holiday bonuses; birthday bonuses; scholarships for dependents; birth, marriage, and funeral allowances; company dinner allowances; preferential-rate deposits for employees; and collaboration with daycare facilities for childcare discounts. In addition, we have also adopted the "O-Bank Rules for Administration of Employee Loans" to assist employees with housing purchases or other financial needs.
In addition to helping employees achieve work-life balance by offering menstrual leave, parental leave, paternity leave, and family leave, O-Bank goes beyond the statutory minimum with additional paid leave options such as family ties leave (for employees who need to care for family members), community service leave (to encourage employees to take part in community service activities), paternity leave for prenatal checkups (so that husbands can accompany their wives to prenatal checkups), and birthday leave (to allow employees to leave work a half-day early on any day of their choosing during their birthday month). And in addition to this extremely varied benefit and leave system, the O-Bank headquarters building has a reading room, an employee lounge, a "health kiosk," a massage and rest area, a music room, and an art gallery where employees can go to relax and enjoy art.
As for employee training, in addition to arranging in-house and outside training courses, we have also launched the "O-Bank digital academy" digital learning platform, which offers access to a wide range of online courses covering such fields as financial services, legal compliance, anti-money laundering, information security, and professional and managerial techniques. In addition, O-Bank offers employees allowances to offset first-time testing fees for professional licenses regardless whether the qualifications are sought for business purposes, to satisfy legal requirements, or for personal reasons. To encourage the pursuit of excellence, O-Bank has a comprehensive performance evaluation system and conducts annual performance management. Under this system, each employee is interviewed by his or her immediate supervisor for a preliminary evaluation. This is then followed up with an inter-departmental secondary review to conduct a performance alignment by senior management for all employees at the same occupational rank. The purpose is to ensure consistent application of standards throughout the entire bank. Because of the company's rapidly growing personnel needs, O-Bank has established an Assessment Center to identify employees with outstanding potential and provide them with proper training.
To prevent workplace accidents, O-Bank has adopted a set of "Working Rules for Occupational Safety and Health," which sets out express standards for workplace safety and health and provides clear and detailed instructions regarding first aid measures, use of emergency equipment, and accident reporting procedures. At the same time, the Bank carries out employee safety and health training as well as disaster preparedness drills, and works to raise safety awareness. In 2017, O-Bank's safety and health training courses as well as its secondary fire and earthquake preparedness team drills were completed by 182 and 108 employees, respectively. These activities have improved employees' emergency response capabilities. O-Bank has created a smokeless working environment, regularly tests its CO2 emissions and use of lighting, and rigorously enforces its door access restrictions to ensure employee safety. The Bank's employee health assessments and workplace health promotion program work extremely well, and the company has received a "Healthy Workplace Certification" from the Ministry of Health and Welfare's Health Promotion Administration.
In the area of labor rights, O-Bank holds meetings of its labor-management council to discuss labor legislation safeguards, and after the council passes resolutions it incorporates the content thereof into the Bank's internal work rules and announces the rules to all employees. Also, in order to create more opportunities for interaction between employees and senior management, O-Bank in 2017 held a series of company events to provide venues for two-way communications between employees and senior management. In addition, O-Bank has established a "Complaint Mailbox" and a "Sexual Harassment Complaint Mailbox." Cases reported via these channels are treated as confidential matters in order to protect the interests of complainants. The company also maintains a "We Care" mailbox to encourage suggestions for ways to care for employee needs.
For many years now, O-Bank has provided its corporate customers with comprehensive solutions by creating boutique financial services featuring real-time convenience, professional sophistication, and reliable security. In January 2017, O-Bank reorganized as a commercial bank, branched out into retail banking, and tapped into digital technology to become the first native digital bank in Taiwan. Ordinary consumers can now use their mobile devices to access financial services online, thus turning O-Bank's vision of financial inclusion into reality.
O-Bank's corporate business services include corporate banking, global transactions banking, financial markets, investment services, securitization, and trust services. In addition, the Bank also provides stepped coupon bonds that are tailored to meet specific customer needs under specific market conditions. Also, O-Bank has launched a Corporate Internet Banking service (to provide corporate customers with convenient and secure electronic banking services), uses an "e-Advice" automated messaging system (which provides customers instantaneous access to the latest business and market information), and offers Automated Clearing House services (which enable customers to receive and pay funds, thus increasing the convenience and security of transactions). For each corporate customer, O-Bank provides a dedicated account representative to ensure maximum service quality. At the same time, the Bank holds a special campaign to show appreciation to its customers and build stronger ties with them.
Since O-Bank formally launched its retail banking services in 2017, consumers have been able to use mobile devices to access a wide range of financial services, including fully online account openings, fully online loan applications, online purchasing of shares in investment funds, and robo-advisor service. In addition, O-Bank has developed many innovative new online app features. One of these is the O-Bank Easy Payments, which can use QR codes, GPS data, or mobile phone numbers to execute funds transfers. Another is the Payment Analysis, which facilitates analysis of the user's account transactions and debit card payments. Yet another is the O-Bank Red Envelope, which customers can use to send "red envelope" cash gifts in digital form via their mobile devices. All these features serve to integrate financial services into the lives of O-Bank customers. And in order to better understand the views of consumers, in addition to online surveys targeted to major online communities, the Bank held an event in December 2017 to meet face-to-face with O-Bank fans, hear their thoughts and suggestions, share information with them concerning future product launches, and invite them to take part in product testing. The idea is to provide digital banking services that better meet the needs of consumers.
O-Bank has taken a series of measures in all its business operations to protect customer information. In addition to complying with the requirements of the "Personal Information Protection Act," the "Financial Supervisory Commission's Regulations Governing Security Measures for Personal Information Files at Designated Non-Public Agencies," and other related legislation, the Bank has also adopted its own "O-Bank Rules Governing Security Measures for Personal Information Files" and related information security management systems, and hired an information security firm to install an information security system. By inventorying personal information, carrying out risk assessments, and implementing personal information management measures, the Bank has raised employee awareness of the need to protect personal information, successfully safeguarded the security of customers' personal information, and fulfilled its duty of due care.
O-Bank strives in the course of routine operations to act in an environmentally conscious manner. The company does everything possible to reduce the company's environmental impact, and seeks to exist in harmony with the environment. Amidst today's rapid advances in the digital sphere, O-Bank has gone paperless with numerous official documents and operations, including the Board of Directors' Meeting Agenda and related attachments, the audit report of the Audit Committee, and the electronic forms system. Employee training, meanwhile, is conducted through the "O-Bank digital academy" digital learning platform to reduce printing of paper teaching materials, and the Bank is also working to reduce paper use by setting copiers and printers in all departments to do double-sided printing by default. In addition, the Bank communicates with corporate customers via the "e-Advice" automated messaging system to reduce printing and mailing. On average, these measures reduce paper forms usage by some 5,000 items per month, which means an 84% reduction in paper usage.
O-Bank is addressing the problem of global climate change by implementing energy conservation policies. In 2017, the Bank phased out inefficient halogen lamps and high-pressure sodium lamps, keeping the original fixtures and switching in more efficient LED tubes. A total of 361 lamps were replaced over the past year, reducing annual energy consumption by an estimated 59,949 kWh (69.91%) and cutting CO2 emissions by some 31.71 metric tons. The O-Bank headquarters employs inverter air conditioning and a variety of sun shades to improve indoor cooling efficiency. It also employs software to control elevator traffic. The number of elevator cars in operation varies from peak to off-peak hours, with only one car kept running on weekends and holidays. As for water resource management, O-Bank relies solely on the public water supply, and has installed infrared sensors at restroom taps to control water usage. All water supply devices are regularly cleaned and filters are changed and inspected, while plants and landscaping are watered according to season and weather to adjust consumption.
O-Bank's suppliers are primarily construction contractors and providers of IT equipment, office equipment, and office supplies. The Bank's "Rules for Purchase Requisition and Payment Procedures" places priority on green products, giving first consideration to environmentally friendly vendors to gradually increase the proportion of collaboration with green suppliers, while at the same time promoting the concept of green consumption to all suppliers. For example, at the Taipei Vie Show Branch and the Zhongxiao Dunhua Branch, both of which the Bank opened in 2017, green purchasing has accounted for 15% total disbursements.
O-Bank reorganized in 2017 as a commercial bank and relies primarily on virtual delivery channels, which means it is the first native digital bank in Taiwan. Having the borderless service model of a digital bank greatly reduces the energy consumption that would otherwise accompany the establishment of physical branches. Consumers no longer need to expend fuel to travel to physical branches to conduct their banking business, and online transactions generally do not involve the printout of paper vouchers. Technology, in the hands of O-Bank, helps us all live in harmony with the environment.
O-Bank embraces the ideals of giving back to society and using sustainable business practices, seeks to reflect a corporate culture of "always sincere, always here" in its social outreach and philanthropic activities, and strives to create a financial group with a human touch. Since the O-Bank headquarters building in the Neihu Science Park was completed in 2008, the O-Bank Educational Foundation has held frequent concerts, lectures, and exhibits in its first floor concert hall and gallery space. Furthermore, the Foundation's "Stars of TiDing Arts Promotion Project" has provided a venue for new and aspiring artists. The Ninth Annual Stars of TiDing Plan received a total of 71 performance and exhibition proposals, and selected 16 performances and 7 exhibits. These events will support a total of 71 budding artists. In addition, the O-Bank Educational Foundation encourages the younger generation to innovate boldly and realize their dreams of entrepreneurship. It has combined government and academic resources to hold the WeWin Entrepreneurship Competition for 10 consecutive years. It has also held business startup fairs, business startup workshops, and other such activities.
In 2015, O-Bank established the O-Bank Community Volunteer Club. O-Bank Vice Chairman Tina Y. Lo, who chairs the Bank's CSR Committee, serves as the Club's honorary president. As of year-end 2017, the Club had 50 members, which was 5.5% of the Bank's Taiwan-based employees. Since its founding in 2015, the Club has made a special effort to serve the needs of schools in remote areas where the children of immigrants account for a relatively large share of all students. The Club donates NT$12,000 per semester, for example, to fund scholarships for students at Jiqing Elementary School in New Taipei City, with scholarship support going to 36 students each semester. Also, in order to help students in remote areas develop a proper understanding of personal financial planning and learn how to spot scam artists, the O-Bank Community Volunteer Club held financial literacy events at remote elementary schools in New Taipei City, attracting 88 participants in 2017. In addition, O-Bank also held a "Holiday Spirit" community service program, a "Cinema for the Mind" program, and a "Rural Schools Culture & Arts" program to create a wide range of extracurricular activities for young students.
In addition, O-Bank has run a Summer Internship Program annually since 2015 to assist low-income students at colleges and universities with their career development efforts. Participation in this six-week program is open to students from underprivileged backgrounds who are currently enrolled in 3rd year or above (including graduate students). During the program, in addition to learning about the financial industry and receiving on-site training at financial institutions, interns also earn a salary, and stellar performers have an inside track for job opportunities after graduation. O-Bank hopes that these training opportunities will make the internship participants more competitive in the job market. Four students took part in the program in 2017.
O-Bank maintains diverse ties with social enterprises. For the past three years in a row, the Bank has held farmers' markets at its headquarters building, inviting social enterprises to come and sell organic fruits and vegetables, and it has joined forces with a social enterprise named Do You a Flavor to hold food drives in which employees of the Bank donate extra food from home to Do You a Flavor, which then makes the food into meals that it distributes to the homeless. O-Bank also purchases products from social enterprises to give away as holiday gift items. It bought over 500 such products in 2017 for a total of more than NT$300,000. For its efforts, O-Bank received a 2nd Class "Buying Power" Award in the new product and service of social innovation Purchase Reward Program from the Small and Medium Enterprise Administration of Ministry of Economic Affairs. And in order to further support the development of social enterprises, O-Bank in 2018 launched the “Exclusive Social Enterprises Demand Deposit Accounts featuring preferential interest rates “as well as the "preferential Social Enterprises payroll account features and services."
Enterprises are an important force for social change. O-Bank hopes to tap into the power of Taiwanese enterprises and work together with them to achieve its vision of co-existing with the natural environment and benefitting together with society. For this reason, O-Bank launched a "B Corp Campaign" in 2017 to encourage other Taiwanese firms to become a Certified B Corporation. This certification, which is based on the B Lab’s B Corp standards, constitutes recognition that a certified company, in addition to pursuing profits, also pays due attention to environmental and social concerns. Such a company is an entity that does the best for employees, the environment, and society. In hopes of acting as a catalyst, O-Bank itself obtained B Corp certification on 30 October 2017. Besides being the first listed bank in the world to become a B Corp, we are also the first listed company in Taiwan and the first financial services firm here to do so.
To fully achieve the B Corp ideal of "not best IN the world, but best FOR the world," O-Bank has joined with the Taipei City Government and B Lab Taiwan in holding a "Best for Taipei" corporate challenge, which offered 20 different courses to help companies prepare for the challenge. In addition, O-Bank also helped B Lab Taiwan hold the 2017 B Corp Asia Forum in Taichung, where scholars and representatives of over 30 overseas Certified B Corporations with representatives of Taiwanese B Corporations to interact and learn from each other. In November 2017, O-Bank joined with B Lab Taiwan in co-hosting a forum on B Corp issues, where representatives of Taiwanese B Corporations gathered to discuss their experiences and identify ways to care for the needs of employees, the environment, and society. The event was attended by more than 200 owners and senior executives of many different companies, some of which are O-Bank clients and suppliers. And to support the development of Taiwanese B Corporations, O-Bank has also set an industry precedent by offering exclusive B Corp demand deposit accounts featuring preferential interest rates, preferential B Corp payroll account features and services, and a special loan program for companies with B Corp Certification.
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Championed by the U.S. non-profit B Lab, the B Movement urges businesses to care for not only financial returns but also social and environmental issues through the B Corp Certification that assesses a company’s overall impact across five dimensions of governance, workers, community, environment, and customers.
Together with the growing B Corp community worldwide, O-Bank will continue to strive for the vision of financial inclusion via digital innovations, use business as a force for good, and ultimately redefine success in business.