Privacy and Human Rights

Published June20, 2024                   Implemented on 20June 2024

1.        Objective: Ensure that the company's suppliers comply with social responsibility standards, prevent social responsibility risks in the supply chain, and protect the company's brand image and customer interests.

2.        Scope: This system applies to all suppliers of the company, including those providing goods, services, raw materials, or other entities with whom the company has business dealings.

3.        Responsibilities and Organization:

·           Social Responsibility Committee: Responsible for formulating, reviewing, and updating the supplier social responsibility risk assessment management system.

·           Procurement Department: Responsible for executing the supplier social responsibility assessment and monitoring supplier compliance.

·           Legal Department: Provides legal support to ensure the assessment system complies with laws and regulations.

4.        Supplier Evaluation:

·           4.1. Preliminary Screening:

o Screening Criteria: All new suppliers must provide basic information, including business licenses, tax registration certificates, social insurance registration, and other legal business documents.

o Basic Information Review: The procurement department reviews the supplier's basic information to ensure its legality and validity.

·           4.2. Risk Assessment:

o Risk Identification: Identify potential social responsibility risks associated with suppliers, such as labor rights, environmental protection, health and safety, etc.

o Assessment Tools: Use standardized assessment tools such as questionnaires, on-site inspections, third-party reports, etc., to gather relevant information.

o Scoring System: Based on the assessment results, suppliers are scored and categorized into low, medium, and high-risk levels.

·           4.3. Evaluation Criteria:

o Labor Rights: Check if suppliers comply with labor laws, and ensure there are no violations such as child labor or forced labor.

o Health and Safety: Assess whether the supplier's workplace meets health and safety standards and whether there are any accident records.

o Environmental Protection: Check if suppliers have caused any environmental pollution incidents and whether they have taken environmental protection measures.

o Business Ethics: Assess whether suppliers adhere to business ethics, and whether there is any corruption, fraud, or dishonesty.

5.        Cooperation and Contracts:

·           5.1. Social Responsibility Clauses:

o Contract Requirements: All supplier contracts must clearly specify social responsibility requirements, such as compliance with labor laws and environmental protection regulations.

o Breach of Contract Liabilities: Clearly outline the legal liabilities and consequences for suppliers who violate social responsibility clauses.

·           5.2. Regular Audits:

o Audit Frequency: Based on the supplier's risk level, determine the audit frequency, with high-risk suppliers audited at least once a year.

o Audit Methods: Conduct audits using various methods, such as on-site inspections, document reviews, and employee interviews.

o Audit Report: Prepare a detailed audit report documenting the issues discovered during the audit and suggestions for improvement.

·           5.3. Non-compliance Handling:

o Warning and Rectification: Issue a warning to suppliers who do not meet social responsibility standards and require them to rectify the issues within a specified time frame.

o Termination of Cooperation: Terminate cooperation with suppliers who severely violate social responsibility standards or fail to rectify issues within the stipulated time.

6.        Training and Promotion:

·           6.1. Supplier Training:

o Training Content: Include basic concepts of social responsibility, relevant laws and regulations, and the company's social responsibility requirements for suppliers.

o Training Audience: All new suppliers, as well as the management and key employees of existing suppliers.

o Training Methods: Use online or offline methods, such as webinars, on-site seminars, training manuals, etc.

o Training Evaluation: Assess the effectiveness of training through exams or feedback surveys to ensure that suppliers fully understand and comply with social responsibility requirements.

·           6.2. Internal Promotion:

o Promotional Materials: Create promotional materials, such as brochures, posters, and emails, to emphasize the importance of supplier social responsibility.

o Internal Activities: Organize internal activities, such as social responsibility weeks and supplier conferences, to raise employee awareness of supplier social responsibility.

o Internal Communication: Use internal communications and meetings to regularly update relevant information about supplier social responsibility, including policy changes and audit results.

·           6.3. External Promotion:

o Public Reports: Regularly release supplier social responsibility reports, publicly disclosing the social responsibility performance and improvement status of suppliers.

o Case Sharing: Share excellent cases of supplier social responsibility on the company’s website and social media platforms to motivate other suppliers to learn from them.

o Industry Cooperation: Participate in industry associations, forums, etc., to exchange experiences with other companies on supplier social responsibility and collectively raise industry standards.

·           6.4. Continuous Education:

o Updated Training: Regularly provide new training for suppliers based on changes in laws and regulations and updates to company policies.

o Feedback Mechanism: Establish a feedback mechanism to collect suppliers’ opinions and suggestions regarding social responsibility requirements, continually optimizing training content.

7.        Records and Documentation:

·           Evaluation Records: Detailed records should be kept for all suppliers' social responsibility assessments.

·           Audit Reports: Maintain reports of supplier social responsibility audits as a basis for evaluation and improvement.

。