1.The social and environment effect by economic activity

　　1.1 Environmental footprint is the impact that a business’ activities have upon the environment including its resource consumption and pollution emissions

　　<1>Environment costs

　　a. Direct and indirect: waste management, remediation costs or expenses, compliance costs, permit fees and environmental certification, legal costs and fines, environmental training, environmentally driven R&D

　　b. Contingent or intangible environmental costs: compensation costs, employee health and safety with potential litigation, risk of impaired assets, reputation.

　　1.2 Social footprint is the impact that a business’ activities have upon the social including communities (particularly where operations are based), customers (product safety issues), employees (job creation issues), suppliers, competitors and reputation risk.

　　<1>The role of the board – Higgs Report/Combined code

　　a. The board is collectively responsible for promoting the success of the company by directing and supervising the company’s affairs.

　　b. The board’s role is to provide entrepreneurial leadership of the company within a framework of prudent and effective controls which enable risk to be assessed and managed.

　　c. The board should set the company’s strategy aims, ensure that the necessary financial and human resources are in place for the company to meet its objectives, and review management performance.

　　d. The board should set the company’s values and standards and ensure that its obligations to its shareholders and other are understood and met.

　　<2>The responsibilities of boards of directors – ICGN report

　　The board’s key functions, duties and responsibilities, for which they are accountable, include those set out below:

　　a. Monitoring the effectiveness of the company’s governance practices according to corporate governance requirement and best practices

　　b. Reviewing, approving and monitoring corporate strategy, risk policy, annual budgets, business plans and performance management; overseeing major capital expenditures, acquisitions and divestitures.

　　c. Ensuring the integrity of the corporation’s accounting and financial reporting systems, set up appropriate internal control and risk management, compliance with laws and regulations

　　d. Monitoring and managing potential conflicts of interest among stakeholders, including misuse of corporate assets and abuse in related party transactions.

　　e. Ensuring a formal and transparent board nomination and election process; selecting, compensating, monitoring and replacing key executives and overseeing succession planning when necessary

　　f. Overseeing the process of disclosure and communications