Stakeholder Engagement

Mr. Chen, MediaTek CSR Committee 
Tel. +886-3-5670766 ext.27518 

Our stakeholder engagement has been sustained through various communication channels, including day-to-day business contact and periodic surveys with stakeholders. In the meantime, we keep up with the latest domestic and international trends of sustainable development. With information collected from the above, we analyze the gap between internal and external stakeholder input and make mid to long term plans to address stakeholders’ top concerns, making rolling revisions. Below is an outline of our current strategic topics and corresponding responses.

Stakeholder identification

Via assessment of the connection and extent of influence between various stakeholders and MediaTek, as outlined by the five principles of AA 1000 Stakeholder Engagement Standard (SES), namely dependency, responsibility, influence, diverse perspective, and tension, the company has identified six major stakeholders as communication targets: customer, industry/governments/academia/research institutes, employees, shareholders and investors, suppliers, and general public/consumers/media. Table 1 is a model and status update of our communication with stakeholders.

Procedures for analyzing materiality

  1. Benchmark analysis: Information collected through major sustainability rating institutes, like DJSI, Sustainalytics, CSR Hub, showed a continuation of trend among international peers (see p.14 of our 2018 CSR Report).
  2. Issue identification: We used the same 23 issues established based on results of our benchmark analysis and ESG issues of concern to stakeholders (see p.12 of our 2018 CSR Report).
  3. Sequencing of material issues: The sequencing was done according to periodic communication with customers, suppliers, shareholders, employees, and so on as well as quantitative and qualitative surveys in four categories: (A) Material Issue Survey (2019, 2020), (B) Employee Survey (2016, 2019), (C) Brand Survey (2018, 2019), and (D) Perception Survey (2017, 2020). The surveys were done with an interval of 2-3 years. We compared new results with their older counterparts to modify our goals and update our priorities.
  4. Establishment of material issues: Based on the results of aforementioned communication and surveys, working groups of the CSR committee looked into fundamental reasons and planned corresponding improvement measures, which were finalized by the Committee Chair (a.k.a. the CEO). The company made minor adjustment of material issues according to stakeholder interest and impact on business in the annual review. The 11 prioritized material issues were derived from the findings of the Material Issue Survey (A), where items with the highest extent of stakeholder interest and impact on business were selected. Apart from those items, we added Social Welfare Activities from the Perception Survey (D) findings, Multi-Channel Communication from Employee Survey (B) findings, and Supply Chain Management from routine communication with stakeholders. The following matrix represents material issues according to findings of the 2020 Material Issue Survey; the 11 prioritized material issues are bolded (see Table 2 for their respective scopes in the value chain):

Table 1: Model of Stakeholder Engagement

Table 2: Material issues and MediaTek's value chain

As an IC design company that does not have in-house production lines or fabs, MediaTek is located at the top of the overall value chain, and our main business is design and sales of products. Our suppliers carry out the entire manufacturing process, including raw materials procurement, wafer processing, assembly, and testing. The following is review of the direct/indirect impact of each material issue on our value chain, where icons for boundary levels are shown in the table below: