Corporate Social Responsibility

Policies and Operations

Corporate Social Responsibility Policy: In order to practice corporate social responsibility and promote economic, environmental and social progress to achieve the goal of sustainable development, the company has formulated the “Corporate Social Responsibility Code of Practice” for compliance.

Executive Unit :

In order to effectively fulfill social responsibilities, the “General Administration Office” is responsible for coordinating the company’s social responsibilities. It regularly convenes relevant departments to discuss and promote the company’s social responsibility plans and supervise the implementation status. It regularly reports the implementation status to the board of directors. The relevant work and promotion highlights are as follows:

Related assignments	Content	Focus Point	Responsible unit
Corporate governance-related	Establish corporate governance structure and ethical standards of conduct Business activities comply with relevant laws and regulations Protect the rights and interests of stakeholders	Relevant standard setting and training promotion Implementation and improvement of various specifications	Financial Department
Sustainable development related	Develop an environmental management system The setting of important management indicators Implement plan evaluation and promotion to improve customer evaluation	Feasible plans for energy conservation and carbon reduction planning	General Affairs Department
Labor relations related	Employee safety, healthy working environment and establishment and maintenance of good communication channels	Employee care/care activity planning and promotion	HR Department
Social welfare related	Participate in local community development and social welfare promotion	Planning and promotion of public welfare activities Establish budget and continuous operation mechanism	HR Department

Social Participaiton

齊心抗疫

Fight COVID-19

Works together to fight the epidemic and donate protective materials and equipment to overcome the challenge of the epidemic together

The COVID-19 epidemic in Taiwan has been severe, and the government was strengthening the establishment of screening stations/vaccination stations. FAVITE Inc. hoped to fulfill its corporate social responsibilities and provide assistance at this moment. FAVITE Inc. donated a batch of protective equipment (protective clothing, protective masks, goggles) and mobile air-conditioners to Hsinchu County Health Bureau in June 2022. We hope to do our best to protect frontline medical staff and fight against the hot weather outdoors. Provide a more comfortable space in the environment. Let us work together, provide positive energy to each other, and overcome the challenges of COVID-19.

Supplier Management

The company regards suppliers as important partners. We are committed to maintaining long-term cooperative relationships with suppliers and establishing a sustainable supply chain with stable development. In addition to ensuring the quality of suppliers’ products, we also urge suppliers to implement environmental protection, improve safety and health, fulfill the company’s corporate social responsibilities, and conduct risk management and operational continuity plans.

In terms of safety and health, it is clearly stated in the contract that if the supplier fails to comply with the relevant regulations of the Occupational Safety and Health Act or the Environmental Protection Act, the company can require improvements within a time limit or be punished according to the “Safety, Health and Environmental Protection Penalty Rules”; if the supplier fails to comply, When the deadline for improvement is exceeded or an occupational disaster or environmental pollution has occurred or there is a risk of occupational disaster or environmental pollution, the company may require the supplier to stop work until the hazard factors are completely eliminated.

For suppliers who work in the factory, after the company conducts safety and health education and training courses, the company requires suppliers to carefully read the company’s equipment and operation hazard notification contents and precautions. After understanding the relevant regulations, they sign a safety, health and environmental protection letter and promise to be sure. Complying with the regulations, and work safety personnel will conduct inspections in the factory from time to time. Those who are found to be in violation of the regulations will be punished according to the “Safety, Health and Environmental Protection Penalties”. Construction shall not continue until the deficiencies are improved.

Equipment and operation hazard notification content and matters needing attention:

Personnel working or using elevated areas must wear and use safety belts and safety helmets that comply with the provisions of the Occupational Safety and Health Law; ladder equipment is only for use during operations, and personnel are strictly prohibited from standing on top or sitting, lying or resting on the steps.
For operations above 2 meters on the machine platform, equipment that can be safely mounted and dismounted should be used.
During electrical work, circuit switches should be locked or tagged with signs such as “No power transmission allowed” or “Power outage in operation” or monitors should be set up to monitor and use insulating protective gear.
When working on fire, appropriate fire extinguishing devices, fire blankets, warning signs or isolation equipment should be installed. If necessary, the entry and exit of non-fire workers should be prevented. Workers should be equipped with safety masks, protective glasses, and protective gloves, and wear them properly.
Triangular cones, fences, and hanging signs must be used at the work site to provide warnings.
Steel-toed safety shoes must be worn when working at the work site
Cigarettes, betel nuts, and lighters are strictly prohibited from being brought into the factory, and eating and drinking at the work site is prohibited.
Mobile phones with camera functions must have stickers affixed before they can be brought into the factory. If you remove the stickers by yourself, the data in the phone will be deleted.

Stakeholder

In order to ensure the implementation of various major issues and the achievement of goals, the general administration office regularly finds out the achievement of each unit’s goals and the formulation of future directions, and frequently submits implementation reports to the board of directors. The communication status of each category of stakeholders is as follows:

Stakeholder	Shareholders and Investors
Important issue of Concern	Operating Performance Law Compliance Ethics and Intergrity Risk Control Shareholders’ Equity Financial Transparency Stakeholder Communication and grievance Mechanism
Corporation’s Main Responsibility	Follow the latest laws and policies of the competent authorities, respond quickly and adjust company information to comply with regulatory requirements. Provide timely and correct company information at the right time. Maintain good operating performance of the company.
Communication Channels and Response Methods	Contact Person(Spokesman)：WANG/ZI-YUE vice president Mail：[email protected] For major event announcements, in addition to being disclosed on the Public Information Observatory, press releases will also be issued as appropriate.
Communication Content and Communication Frequency	A shareholders’ meeting is held every year to report to investors the company’s future operating policies and profitability. The board of directors shall be held at least quarterly every year to discuss the company’s major business and report the financial business execution status for the directors’ information. Major information will be released on the public information observatory from time to time for investors to understand. Consolidated financial reports are released quarterly for investors to understand.

Stakeholder	Customer
Important Issues of Concern	Law Compliance Marketing Communication Service Quality
Corporate Main Responsibility	Provide High-Quality Products and Servise Increasing Customer Satisfaction
Communication Channels and Response Methods	Contact Person: Sales Department Mail： [email protected] Cooperate with customers’ product, environmental, responsibility and other requirements, and coordinate prevention and continuous improvement.
Communication Content and Communication Frequency	Hold customer meetings from time to time. Participate in exhibitions from time to time to interact with customers, collect customer demand information, and seek cooperation opportunities.

Stakeholder	Supplier
Important Issues of Concern	Assessment of supplier labor conditions. Environmental compliance.
Corporate Main Responsibility	FAVITE Inc. attaches great importance to environmental issues, strengthens supplier management, and strives to comply with domestic and foreign environmental standards for all products, parts, materials ,and accessories it provides. Suppliers are required to comply with the provisions of the “Occupational Safety and Health Law” and read the “Implementation Key Points of Labor Safety and Health Management” in detail. If there is any violation, the company will require each unit and personnel or the supplier to make improvements within a time limit or impose a fine according to the purchase order as punishment.
Communication Channels and Response Methods	Contact Person: purchsing Department Mail：[email protected] Suppliers Meeting
Communication Content and Communication Frequency	Hold supplier meetings from time to time to review whether quality, delivery, and other operations are in good condition. Regularly evaluate suppliers to ensure that they meet company requirements.

Stakeholder	Employee
Important Issues of Concern	Labor-employer relationship Talent training and development Salary and bonus benefits Workplace Health and Safety Employee recognition and retention
Corporate Main Responsibility	Protect human rights. The company upholds the spirit of respecting human rights, abides by relevant norms of international human rights conventions, and is committed to creating employee well-being: Fair promotion – ensuring that employees are not treated in a discriminatory manner during the recruitment, appointment and promotion processes. Prohibition of child labor – The company complies with the Labor Standards Act and does not employ workers under the age of 15. Sexual Harassment Prevention and Control – Publicly disclose sexual harassment prevention and control measures, complaint and disciplinary guidelines, and set up a complaint hotline and dedicated email address. Employee development: Increase diversified education and training. Safe and hygienic environment. Employee Communication
Communication Channels and Response Methods	Contact Person: HR Manager Mail：[email protected] Sexual harassment complaint hotline and dedicated email address. Set up an “employee opinion mailbox” for employees to express their opinions.
Communication Content and Communication Frequency	Regularly organize new employee education and training to help understand the company’s relevant operating regulations. Regularly conduct on-the-job health examinations for employees and statutory items. Exchange opinions from time to time through symposiums, management meetings, emails, etc. to maintain good interaction between labor and management..

Stakeholder	Community
Important Issues of Concern	Social welfare feedback and donations.
Corporate Main Responsibility	Based on corporate ethics, treat and balance the rights and interests of all stakeholders and spread social influence. Promote the concept that corporate development should respond to social feedback and enhance positive social influence.
Communication Channels and Response Methods	Contact Person: General Affairs Department Mail：[email protected] The company’s official website reveals execution results.
Communication Content and Communication Frequency	Support community residents’ activities, phone calls or emails from time to time.

Environment Protection

Policy: In the face of climate change and the deteriorating environment, the company promotes the environmental protection concept of cherishing the earth’s resources, strives to enhance employees’ environmental protection awareness, and continuously improves energy management and pollution prevention measures.

Energy management: The factory area implements air-conditioning control measures and replaces energy-saving and environmentally friendly lighting equipment in stages year by year to reduce electricity usage and carbon emissions. It is expected that by the end of 2020, the goal of reducing annual electricity consumption by 3% will be achieved.
Waste management: implement pollution prevention, save energy to reduce the impact on the environment, and ensure that any waste is disposed of in a safe and environmentally sound manner. Regarding the general industrial waste from business production, entrust an environmental protection company with Class A or Class B clearance and disposal qualifications to clean up and dispose of general industrial waste on its behalf, so as to prevent the outflow of industrial waste from polluting the environment.
Water resource management: The filter element is replaced every three months to ensure the quality of drinking water. The company reminds colleagues to save water through internal publicity.
The use of recycled paper in the company is increasing year by year, and about 10,000 kilograms of recycled paper are used every year. The recycling paper utilization rate remains above 90%.
Reduce water consumption per unit product by 1% every year.

Execution Dep.: General Affairs Department

Annual CO2 emissions:

Year		Headquarter(Hsinchu)	Taihe Factory	Total Emission
2018	Carbon dioxide emissions(Kg)	610,460	184,828	795,288
2019	Carbon dioxide emissions(Kg)	620,740	39,204	659,944
2020	Carbon dioxide emissions(Kg)	818,549	19,379	837,928
2021	Carbon dioxide emissions(Kg)	746,313	17,718	764,031

Water Consumption：

Year		Headquarter(Hsinchu)	Taihe Factory	Total Water Consumption
2018	Amount of water (tons)	4,384	1,304	5,688
2019	Amount of water (tons)	4,329	439	4,768
2020	Amount of water (tons)	5,281	54	5,335
2021	Amount of water (tons)	4,624	111	4,735

Total Weight of Waste：

Year		Headquarter(Hsinchu)	Taihe Factory	Total Weight of Waste
2018	Waste Generation(Kg)	44,680	3,600	48,280
2019	Waste Generation(Kg)	50,190	1,800	51,990
2020	Waste Generation(Kg)	52,000	0	52,000
2021	Waste Generation(Kg)	26,200	0	26,200

Friendly Workplace

Protect Human Rights
FAVITE Inc. upholds the spirit of respecting human rights and follows international human rights conventions, including the United Nations Universal Declaration of Human Rights, the United Nations International Labor Organization’s Important Principles and Rights in the Workplace, and the United Nations Guiding Principles on Business and Human Rights, and is committed to creating employee well-being:
- Fair Promotion – Ensure that employees are not treated in a discriminatory manner during the recruitment, appointment, and promotion processes.
- Prohibition of child labor – The company complies with the Labor Standards Act and does not employ workers under the age of 15.
- Sexual Harassment Prevention – Publicly disclose sexual harassment prevention measures, complaints, and disciplinary guidelines, and set up a complaint hotline and dedicated email address.

Employee Rights and Benefits

Title	Content
Employee Benefits Policy	FAVITE Inc.’s various employee welfare measures, further education, training, retirement systems, and their implementation status, as well as the agreements between labor and management and various employee rights and interests protection measures: Employee welfare measures We adhere to the concept of sharing business results with employees, establish an “Employee Welfare Committee” in accordance with the law, and plan employee welfare measures in accordance with the “Employee Welfare Measures” in order to stabilize employees’ lives and protect their rights and interests. The company’s main welfare measures are as follows: Distribute uniforms to employees Wedding and funeral subsidies Travel subsidy Birthday gift card Annual health checkup Club activities subsidy Year-end party Department banquet Breastfeeding Room Convenient and free car/motorcycle parking lots Group insurance is fully subsidized by the company Year-end performance bonus, employee dividend bonus Provide one day of vitality leave every quarter, which is better than the labor standard law(new colleagues will be given in advance immediately upon arrival) Education, Training In order to enable employees to grow together with the company, the company regards employees as important assets and attaches great importance to employee training and career development. In order to promote talent cultivation and management, the “Education and Training Management Operation Methods” are formulated for employee further training, and budgets are prepared year by year to promote Training, through internal and external training, which not only allows employees to enhance their professional skills, adapt to the rapidly changing environment, enhance work performance, improve product and service quality, but also create individual employees and the overall competitiveness of the organization, so that employees’ career development and the enterprise Business and development complement each other. Retirement system and its implementation In order to stabilize the retirement life of employees, a pension system is implemented in accordance with relevant laws and regulations, and pensions are allocated in the following two ways: The Retirement Reserve Fund Supervision Committee is established in accordance with the provisions of the Labor Standards Act, and the retirement reserve fund is allocated to the retirement account of the Central Trust Bureau on a monthly basis, and labor retirement regulations are formulated and implemented in accordance with regulations. According to the Labor Pension Regulations, the employer contributes 6% of the individual’s salary to the individual pension account of the Labor Insurance Bureau on a monthly basis.
Employee Rights and Interests Maintenance Protective Measures	The company attaches great importance to harmonious labor-management relations, and complies with the Labor Standards Law and relevant laws and regulations or is better than the implementation of laws; labor-management meetings and occupational safety and health committee meetings are held regularly every quarter. The company’s labor-management-related measures are finalized after full communication and agreement between labor and management. No labor disputes or disputes occurred. Establish an employee welfare committee to provide various welfare measures. Employees are encouraged to participate in various training and skills training to comprehensively enhance their professional skills. We provide labor insurance, national health insurance, and group insurance. In addition, colleagues on business trips can also purchase group business travel safety insurance to provide comprehensive insurance protection. Arrange regular employee health examinations every year.

Working environment and personal safety protection
1. Protective measures for safety inspections of employees’ premises: Conduct public safety inspections of buildings in office premises and factories in accordance with the Construction Law and Building Public Safety Inspection Visa and Declaration Procedures, with a view to making the office premises a legal, safe, and safe place.
2. Employee health protection measures: In accordance with labor health protection rules, on-the-job health examinations and management of statutory items are conducted every year for employees and contractors.
3. Fire safety protection measures for office premises and manufacturing plants: In accordance with the Fire Protection Law and its implementation rules, fire inspections of the office environment of the affiliated office premises shall be carried out every year according to the deadline and reports shall be submitted to the fire brigade.
4. Regarding employee response measures and training in the event of fires and disasters: In accordance with the Fire Protection Law, employee self-defense fire drills and first aid training are conducted twice a year to enable employees to have good disaster relief and response capabilities.
5. Electricity and electricity safety measures in employee offices: In accordance with the Occupational Safety and Health Act, professional electrical consulting companies are regularly entrusted to obtain electrical technician licenses and conduct monthly electrical equipment safety inspections to ensure the safety of electricity in employee offices.
6. Training and protection measures for employee safety and health education and training: According to the labor safety and health education and training rules, new employees are required to receive safety and health education and training to ensure that employees have sufficient safety and health knowledge to prevent occupational disasters after entering the company.
7. Dispatch training for qualified operators who use hazardous machinery and equipment in manufacturing plants: In order to enable colleagues to legally and safely use and operate the hanging equipment in the factory, it is required that they must first be sent to a qualified labor safety and health training unit for training, and must take an exam to obtain a license. Operate to ensure the safety of colleagues at work.
8. Ambient air quality testing of workplaces in office environments: In order to ensure the air quality of colleagues’ working environment, qualified workplace environment measurement vendors are regularly entrusted to conduct regular ambient air quality testing.
Employee Communication
Strengthen the interactive communication mechanism, continue to care about employees’ feelings, and solve employees’ difficulties in a timely manner.

※Employee communication channels are as follows:

Written delivery: Employees can submit their opinions in writing to their mailbox.
Convey in person: Employees can convey their opinions in person to the audit unit or human resources unit.
Email: Employees can express their opinions directly through the “Employee Opinion Mailbox” on the company’s intranet.