CORPORATE SUSTAINABILITY

With a commitment to the "Co-prosperity" philosophy, Rexon introduced the lean production model in 2017. Initially implemented internally, the lean production approach resulted in significant benefits, with increased productivity per employee. Building on the success of lean production within the organization, Rexon extended the model to its supply chain in 2020. To accomplish this, Rexon formed the R-Team project, consisting of 27 key suppliers. The project was led by a vice president-level executive from the procurement department. By organizing the project and adopting a collaborative learning approach, Rexon shared its successful experiences, methodologies, and concepts of lean production with the suppliers. The R-Team project provided guidance and assistance to suppliers in analyzing, planning, and implementing lean production practices.
To support the R-Team project, Rexon engaged the expertise of professors and their team from Tunghai University, specializing in lean production. They provided coaching and training to both the participating suppliers and the members of the Rexon project team. The R-Team project team at Rexon engages in daily communication, analysis, and review with relevant departments through established mechanisms. They also hold weekly lean meetings with senior executives to report their progress and discuss further improvements. After reaching a consensus on process improvement during the discussions, relevant adjustments and further refinement are carried out in line with the principles of lean management.

In 2023, Rexon incorporated the "Supplier Social Responsibility Compliance Clause" into the supplier evaluation survey, further driving suppliers to implement sustainable practices such as environmental sustainability, human rights protection, and resource recycling.
Rexon refers to international standards such as ISO 9001 Quality Management System, ISO 14001 Environmental Management System, ISO 45001 Occupational Health and Safety Management System, SA 8000 (Human Rights and Labor Rights), ISO 26000 (Organizational Governance, Human Rights, Labor Practices, Environment, Fair Operating Practices, Consumer Issues, Social Engagement, and Development), and the Responsible Business Alliance (RBA) Code of Conduct (Labor, Health and Safety, Environment, Ethics, Management Systems) as references. In 2023, Rexon plans to include the "Supplier Social Responsibility Compliance Clause" in the supplier evaluation survey form and consider it in the scoring process. The implementation steps are as follows:

1. The Legal Department will draft the "Supplier Code of Conduct" for adherence by Rexon's business partners.
2. Within the existing R-Team Lean Supply Chain organization, an ESG team will be established to provide guidance to 15 selected suppliers in the first phase of carbon inventory assessment, scheduled to take place in 2023.
3. On January 9, 2023, the supply chain e-commerce platform will be upgraded. From January 4 to January 5, three education and training sessions will be conducted, involving a total of 161 suppliers. At the beginning of each session, an anti-corruption advocacy video by the Anti-Corruption Agency will be played to reiterate the company's integrity policy to the suppliers.

Rexon has always adhered to the three "no" policies as the company's quality culture motto: "No defective parts enter Rexon; No defective products are passed to the next process; No defective finished goods leave Rexon." To implement the quality policy effectively, the company focuses on thorough source management to ensure zero defects, quick response, and meeting market and customer demands. The quality management process and framework (as shown in the diagram) demonstrate Rexon's continuous improvement in organizational practices and methods to enhance service quality, ultimately aiming to achieve customer satisfaction.

To adapt to the market trends focused on consumer orientation and shortened sales channels, Rexon has implemented thorough source management through supplier management. This ensures zero defects in quality, timely adjustments in quality policies for quick response, and listening to consumer voices to meet market and consumer needs. Rexon continuously improves its existing workflow, enhances process capabilities, and strives to meet consumer demands for products, services, and new offerings, even surpassing their expectations. Therefore, the company maintains continuous monitoring of supplier input quality and establishes a supplier guidance source control mechanism as depicted in the diagram.

As part of its international product marketing, Rexon ensures that its sales process undergoes verification for environmental safety and uses materials that do not adversely affect consumer health. This involves obtaining validation from various environmental protection systems and complying with safety certifications specific to each sales region. (Electric Tool Product Certifications - US CUL & EU CE, Electric Tool Product Certifications - Taiwan BSMI & TS, Fitness Equipment Product Certifications - US FCC & ETL & ASTM.)