Corporate Sustainability Corporate Sustainability Corporate Sustainability

CORPORATE SUSTAINABILITY

CORPORATE SUSTAINABILITY

HUMAN RIGHTS MANAGEMENT


Human Rights Management _

Rexon Industrial is dedicated to observing international human rights standards, including the United Nations Universal Declaration of Human Rights, United Nations Global Compact, and the International Labor Organization Declaration of Fundamental Principles and Rights at Work, and abides by relevant laws and regulations.

We strive to maintain harmonious labor-management relations, realize equality and ensure health and safety at the workplace, and enhance the physical and mental balance of the employees. We have established management regulations, including the “Work Rules”, the “Illegal Infringement Hazard Prevention Plan”, and the “Personnel Management Regulations”. These explicitly state the protection of the human rights of the employees, including basic legal requirements, freedom of employment, humane treatment, prohibition of Inappropriate discrimination and sexual harassment.

To enhance the awareness of human rights among the employees and protect their rights and interests, we have established a diverse and effective communication mechanism, set up a sound remuneration and welfare system, and provided training and development opportunities as well as relevant courses.
The Company retains and publishes the Work Rules, Workplace Illegal Infringement Hazard Prevention Plan, and Personnel Management Regulations in its private cloud database for all employees to access at any time.
We organize periodical education and training on illegal infringement to enhance the awareness of human rights among the employees and promote workplace safety. In addition, we use QR-code cloud to establish an anonymous complaint channel, enhance the function of this channel, and protect employee’s privacy.
Regarding the freedom of association and collective agreements, Rexon Industrial has not yet made request to suppliers. The Company first disseminates the human rights policy verbally at the supplier conference and through audit management. We plan to include this in the supplier audit management in 2024.
All security personnel of the Company are full-time employees. Training on anti-discrimination, sexual harassment, workplace bullying, notification mechanism, anti-terrorism education, fire safety, access control, access to containers, and cargo safety was arranged for security personnel in 2023 to help them understand more about the work system and their job. Each of them took 3.5 hours of training. Managers conduct supervision and evaluation on a regular basis to ensure compliance with regulations.

The Company provides indigenous people with one-day leave for their sacrifice ceremonies. In 2023, a total of four employees applied for the leave and there were no incidents of infringement upon the rights of the indigenous people.

International human rights standards

International human rights standards

Retains and publishes the Work Rules

Retains and publishes the Work Rules

Protect employees rights and interests

Protect employees rights and interests

Illegal Infringement Hazard Prevention Plan

Illegal Infringement Hazard Prevention Plan

All security personnel of the Company are full-time employees

All security personnel of the Company are full-time employees

No incidents of infringement upon the rights of the indigenous people

No incidents of infringement upon the rights of the indigenous people

MEASURES AND ACHIEVEMENTS


Human Rights Policy-Measures and Implementation _

Human
Rights Policy
Opportunities for<br>Diversity, Inclusion,<br>and Workplace Equality Opportunities for
Diversity, Inclusion,
and Workplace Equality
Promoting Harmonious Labor-Management Relations Promoting Harmonious Labor-Management Relations
Healthy and Safe Workplace Healthy and Safe Workplace
Respect for Privacy and the Right<br>to Freedom of Association Respect for Privacy and the Right
to Freedom of Association
Prohibition of Forced<br>and Compulsory Labor Prohibition of Forced
and Compulsory Labor
Child Labor Child Labor

Opportunities for Diversity, Inclusion,
and Workplace Equality

  • Adhere to government labor laws and regulations, and implement internal management policies accordingly.
  • Provide a gender-equal and diverse working environment for employees, upholding principles of openness and fairness. No discrimination or differential treatment based on personal gender, age, marital status, race, social class, language, ideology, religion, political affiliation, place of origin, birthplace, appearance, facial features, or disabilities shall be tolerated in language, attitude, or behavior. Joint efforts are made to create a work environment that is dignified, safe, equal, non-discriminatory, and free from harassment.
  • As of the end of December 2023, no complaints over employment discrimination were received.

Child Labor

3 people were hired in the summer of 2023.
The main purpose of the Company to hire adolescents is to provide them with valuable workplace experience, facilitate their growth and development, help train future laborers, and enable them to learn skills and values at work. At the same time, we give adolescents the opportunity to participate in the work and help them build self-confidence, the sense of responsibility, and teamwork capability. This way, we cultivate members of the society for the future who have higher awareness of sustainable development. Through proper guidance and supervision, we ensure that their work environment is safe and legal, and thus enhance the commitment of the Company to the sustainable development.

Prohibition of Forced and Compulsory Labor

Adhere to government labor laws and regulations, respect the willingness of the employees, and prohibit forced labor; establish complaint channels and a set of reasonable and persuasive complaint handling procedures.

Respect for Privacy and
the Right to Freedom of Association

Rexon recognizes legal trade unions established by the employees and supports the employees for their freedom to organize trade unions. Rexon Industrial Union was established on April 27, 1985, and was renamed Rexon Union on October 31, 2012. Union representatives are jointly elected by all employees. Rexon respects their rights to negotiate with management and actively communicates and interacts with the union organization.

Healthy and Safe Workplace

Adhere to government regulations, provide employees with a safe and healthy work environment, regularly evaluate environmental safety, and promptly maintain the environment to achieve the goal of zero occupational accidents.

Promoting Harmonious Labor-Management Relations

  • Providing diverse communication channels and holding regular labor-management meetings to foster harmonious relations between labor and management and create a favorable labor-management environment.
  • Four meetings were held in 2023 to ensure thorough communication between labor and management.

The government amended the laws related to gender equality in 2023. The Human Resources Department promotes the improvement of the gender equality awareness among the employees. Posters are posted on the bulletin board of the factory to ensure that employees have a clear understanding of relevant laws and regulations. Managers are responsible for encouraging employees to participate in the training.
The Company invited Dr. Liao Yue-Zi from the Department of Family Medicine, Dali Jen-Ai Hospital, to give a physical health lecture in 2023 to promote the physical and mental health of the employees. The participation rate of the lecture is relatively low because the lecture is voluntary and arranged during the working hours. However, Rexon Industrial will continue to plan a series of diverse courses to promote the concept of health care.

Implementation Method

Number of Employee Participants
(or Number of Supplier Participants)

Total Number of Employees
(or Total Number of Supplies)

Participation Ration(%)

Implementation Method

Gender equalityeducation and training

Number of Employee Participants
(or Number of Supplier Participants)

187 people

Total Number of Employees
(or Total Number of Supplies)

818 people

Participation Ration(%)

22.9%

Implementation Method

Employee human rightseducation and training

Number of Employee Participants
(or Number of Supplier Participants)

677 people

Total Number of Employees
(or Total Number of Supplies)

818 people

Participation Ration(%)

82.8%

Implementation Method

Health careeducation and training

Number of Employee Participants
(or Number of Supplier Participants)

169 people

Total Number of Employees
(or Total Number of Supplies)

818 people

Participation Ration(%)

20.7%

Implementation Method

Family relationship Course

Number of Employee Participants
(or Number of Supplier Participants)

598 people

Total Number of Employees
(or Total Number of Supplies)

818 people

Participation Ration(%)

73.1%

TALENT CULTIVATION AND RETENTION


Talent Cultivation and Retention (Material Topic) _

Description of positive benefits

Description of
positive
benefits

Talent cultivation and retention are critical for corporate sustainable development. It not only helps build a robust corporate reputation, but also has a positive impact on the society and environment. We build an outstanding talent team to help the Company better cope with market changes, innovate products and services, and face various challenges to realize long-term economic benefits. We know very well that the progress of the industry and the growth of a company require a large number of excellent talents.
Hence, we advocate lifelong learning and are dedicated to creating an organizational culture of continuous learning. We train our employees to become experts in their respective fields in a way such as Rexon Academy and the digital learning platform. At the same time, we actively collaborate with the academia and industry to train high-end technology talents in smart manufacturing and other fields in order to build our long-term competitive advantages.

Description of negative benefits

Description of
negative
benefits

Rexon Industrial did not have negative impact incidents in 2023.
If there is a negative impact on talent cultivation and retention, it is very likely the dissatisfaction of the employees due to nonfulfillment of our commitments, resulting in low morale, decline in work performance, and a wave of resignation.
In addition, participating in the talent cultivation and retention activity to meet the CSR requirement without investing adequate resources and efforts may impose a restriction on the actual result of the training and result in failure to achieve expected goal of talent cultivation and retention.

Remedial mechanism

Recruitment Stage

Ensure that the recruitment interview is consistent with the post-employment job contents and the unit head and HR specialist care about the adaptation status of the employees to reduce the risk of resignation among the new employees because they are not adapted to the job.

After Employment

Help new employees adapt to the overall environment of the Company through education and training of new employees. When an employee proposes to resign, the HR department of the Company conducts a caring interview and analyzes the important factors of retention and resignation to increase the employee retention rate.

Employee Training

The Company has developed a complete training system and achieved the goal of all-round employee training through the digital education and training platform of Rexon Academy to avoid occurrence of negative impact incidents.

Complaint/communication channels

The Company attaches great importance to cultivating talents and establishes seven training communication channels to ensure that employees can participate effectively.

Direct communication and response between employees and managers

Direct communication and response between employees and managers

Education and training platform of Rexon Academy

Education and training platform of Rexon Academy

EAPs hotline

EAPs hotline

Company’s hotline

Company’s hotline

Whisper Zone

Whisper Zone

Opinion mailbox

Opinion mailbox

Labor-management meetings

Labor-management meetings

Policy/commitment

Objective

Responsibility

Complaint/communication channels Complaint/communication channels Complaint/communication channels

Policy/commitment

Provide high-quality human resources and a comprehensive promotion and career development system

Objective

Improve competitiveness, stimulate innovation of the team, reduce brain drain, enhance organizational culture, and achieve sustainability goals. Through talent cultivation and retention, we are dedicated to building a solid team and ensuring that the organization has a high-performing team to respond to market changes and competitive pressures.

Responsibility

The head of each department is responsible for talent development and retention. The Human Development and Training Committee is responsible for supervision.

Rexon's goals

2023 goals

  • Improve training quality and obtain TTQS Gold Medal
  • Promote the pass-down and learning of knowledge and provide lectures for managers
  • Arrange a series of courses given by managers to improve the ability of department heads to develop their subordinates
  • Promote industry-academia cooperation for the development of technology talents.

Achievement status of 2023 goals

  • Won the TTQS (Talent Quality-management System) Golden Medal
  • Organized 17 manager sharing sessions.
  • Each department arrange a series of courses given by managers to a total of 232 classes
  • In 2023, we collaborated with the National Chin-Yi University of Technology to recruit 7 students, 5 students from Chaoyang University of Technology, and 17 students from Hsiuping University of Science and Technology.

Short-term Goals
(2024~2025)

Promote internal lecturer training, build Rexon University and establish functional courses for each academy, improve employee’s functional development, and improve the talent training learning map. It is expected to provide 600 classes for the internal and external training and for the departments in 2024 with an increase of 10% from the previous year.

Medium-term and Long-term Goals
(2026~2028)

Provide a challenging and innovative environment to unleash the potential of the employees and build a competitive talent team.

Rexon's goals

Specific actions
in 2023

  • Cooperated with National Chin-Yi University of Technology, Chaoyang University of Technology, and Hsiuping University of Science and Technology in 2023.
  • Each department arranged a series of courses given by managers to improve the ability of department heads to develop their subordinates, with the professional knowledge, professional skills, EQ management, and cultivation of the accountability cultural concept as the training blueprint.
  • Provided manager short talks to share their experiences and promote common progress of the managers at all levels.

Management
Measurement
Mechanism

Incorporate the courses given by managers in the monthly BSC review items. The HR department reports and reviews the implementation discrepancies at the business review meeting.

Results

232 classes

Retention
rate 74%

Leave return rate67%

17 manager
short talks

Recruit 17
university
student

232 classes

Each department arranged a series of courses given by managers once a month. A total of 232 classes were completed in 2023.

Retention
rate 74%

The key talent retention rate was 74% in 2023

Leave return rate67%

The maternity leave return rate was 67% in 2023

17 manager
short talks

A total of 17 manager short talks were held in 2023.

Recruit 17
university
student

In 2023, we collaborated with the National Chin-Yi University of Technology to recruit 7 students, 5 students from Chaoyang University of Technology, and 17 students from Hsiuping University of Science and Technology.

EMPLOYEE RIGHTS AND BENEFITS


Employee Rights and Welfare(Material Topic) _

Description of positive benefits

Description of
positive
benefits

  • Provide smooth care and communication channels and introduce the service from professional counseling and consultation institutions
  • Provide diverse welfare and health care and enable all employees and their lineal family members within the third degree of kinship to participate in the welfare benefits of the Company
  • Report: Employee welfare is closely intertwined with talent retention within a company. Well-developed employee welfare programs can enhance the company’s image, reduce employee turnover, improve job satisfaction, and increase productivity, thereby achieving sustainable business growth and creating a win-win situation for both labor and management. Conversely, an increase in employee turnover can hinder the appropriate selection and retention of talent, leading to a detrimental cycle where valuable managerial expertise and knowledge are not effectively passed down. Companies require outstanding talent to drive business development, and improving employee retention rates can reduce the costs associated with human resources while maintaining stability and a competitive edge.
Description of negative benefits

Description of
negative
benefits

  • It is easy to create a sense of distrust among employees and this may result in a decrease in morale and affect the teamwork, work attitude and work efficiency.
  • Lead to increased loss of employees and thus an increase of the recruitment and training costs.
  • The corporate image and reputation are damaged, resulting in negative impact on external recruitment and customer trust.
  • Cancel welfare benefits may lead to labor-management disputes easily.

Remedial mechanisms/measures

There were 9 employee complaint cases in 2023
When the Company receives an employee complaint, the HR department accepts it and forms an investigation team to investigate the truth. The parties involved and the contents of the investigation is kept confidential strictly during the process. After the result of the investigation is approved, the complainant affixes his/her signature to confirm the closure of the case.
If the handling opinion of the complaint is not accepted, the complainant may file an appeal. The approved complaint case is further dealt with in accordance with the "Discipline Management Regulations".
When an employee complaint occurs, the personnel of the HR department first listen patiently, soothe the emotion of the employee from an empathic stance, and then investigate the details of the complaint to avoid worsening of the problem. The completion rate of employee complaint cases in 2023 was 100%.

HR department acceptsan employee complaint

investigation team toinvestigate the truth

approved

complainant affixes his/her signatureconfirm the closure of the case

not accepted

file an appeal

Complaint/communication channels

Complaint/communication channels

Employees can file a complaintto the manager

Complaint/communication channels

Company’s hotline
(04)2491-4141 Ext.6189

Complaint/communication channels

Message system:
hrd@rexon.com.tw

Complaint/communication channels

Union

Complaint/communication channels

QR-codeWhisper Zone

Complaint/communication channels

Opinion mailbox

Complaint/communication channels

Labor-management meetings

Policy/commitment

Objective

Responsibility

Complaint/communication channels Complaint/communication channels Complaint/communication channels

Policy/commitment

Make effort to create a work environment in favor of physical and mental health and diverse development. Be committed to continuing talent cultivation and investment, providing comprehensive career development plans and blueprints, striving for the employees to unleash their strengths, satisfying the needs and goals of career developing, and providing wages and welfare benefits that are competitive in the market.

Objective

Ensure that employees enjoy all the benefits in terms of welfare, promote equal participation in jobs, improve the qualify of life for employees, and observe statutory standards. Ensure that employees are respected, protected, and make contribution to the sustainable development of the Company.

Responsibility

  • HR Division
  • Employee Welfare Committee
  • Gender Equality Committee

Rexon's goals

2023
Target

Achievement
status
of 2023 goals

Short-term Goals
(1-2 years)

Medium-term and
Long-term Goals
(3-5 years)

2023
Target

  • No significant employment incidents to ensure stabilization of the labor force in a along term.
  • Feedback given within 7 days after complaint.

Achievement
status
of 2023 goals

  • No significant labor incidents.
  • There were 9 complaints in the reporting year. All of them were handled within the specified deadline with a completion rate of 100%.

Short-term Goals
(1-2 years)

  • The employee satisfaction reaches 65%.
  • The number of employees participating in health activities increases by 10%.
  • The number of employee complaint cases decreases by 10%.

Medium-term and
Long-term Goals
(3-5 years)

Comply with labor laws and regulations with the goal of zero violations.
Ensure open communication channels for employees and achieve a 100% response rate, while aiming to complete evidence collection within 3 days and provide feedback to complainants within 7 days.
Provide a challenging innovative environment to unleash the potential of employees; continue paying attention to the health care for the employees and provide an outstanding and healthy workplace environment to continuously increase the employment opportunities for women; empower women to realize a workplace environment of gender equality.

Specific actions
in 2023

  • Employee communication channel dissemination conference: One physical class for the managers at the manufacture level and above
  • Applied to the Ministry of Labor for employee care guidance: 2 times by the HR Division
  • Periodical labor-management meeting: 4 meetings in 2023
  • Periodical Employee Welfare Committee meeting: 4 meetings in 2023
  • Periodical kick-off meeting: 4 meetings in 2023
  • Periodical performance evaluation: 13 evaluations in 2023
  • Sexual equality dissemination: Dissemination of maternity care in February 2023; dissemination of sexual equality regulations in August; one online course provided by the Gender Equality Committee

Management
Measurement
Mechanism

  • Evaluate performance every month and give immediate feedback about the performance of the employees.
  • The Company conducts annual performance evaluation and managers and give employees relevant feedback and suggestions related to their work, competence, interpersonal relationship and communication to help them improve their development every year.
  • The Company carries out assessment and audit of each corporate system, conduct satisfaction surveys periodically, give improvement suggestions, and amend regulations according to the suitability to improve the welfare of the employees.

Results

No human rights violation or discrimination

No human rights violation or discrimination
incidents among the employees in 2023

Happy Workplace Silver Medal

2022 Happy Workplace Silver Medal
Received from 1111 Job Bank

sports enterprise certification

2023
sports enterprise certification

WORKPLACE SAFETY AND HEALTH


Occupational Safety and Health (Material Topic) _

Description of positive benefits

Description of
positive
benefits

Rexon implements the ISO 45001 occupational health and safety management system, establishes an organizational structure, and advocates the safety concept. The positive impact of these practices helps improve the physical and mental health and safety of employees, win positive recognition in both business and goodwill, reduce waste of time, and retain employees. This can also ensure easy compliance with laws and regulations, create and guide to a more comprehensive awareness of transformation management. Finally, we implement a robust and suitable occupational safety and health management system to help the organization protect the Company and employees and ensure that all the employees can return home form the workplace safely without occupational injuries.

Description of negative benefits

Description of
negative
benefits

Regarding material occupational safety and health issues in 2023, although 15 work-related occupational accidents (due to falling objects, collision, pinching and other work-related accidents) occurred and produced negative impact, all of them were not significant injury incidents. As for the preventive measures for the incidents of negative impact, the regulations and procedures specified in the ISO 45001 Occupational Safety and Health Management Systems introduced in 2023 are adopted and implementation for prevention purposes.

Remedial mechanisms/measures

When an incident of negative impact on occupational safety and health occurs, the management procedures and regulations defined in ISO 14001 and 45001 EHS system are adopted for assessment, improvement, and implementation. Internal and external issues are used to establish a two-way communication channel as an additional mechanism of remedial measures.

ISO 14001 and 45001 EHS system

assessment

improvement

implementation

two-way communication channel

Complaint/communication channels

Occupational safety and health - As for consultation, participation, and communication procedures, internal and external complaints and opinions from different levels can be addressed effectively, and a channel of communication with external stakeholders with respect to the EHS management commitment and performance is set up.

  1. Internal communication - The communication with internal departments and levels should be conducted through meetings, proposals, mails, social media, faxes, phones, announcements, contact forms, etc. These should be the accepted by a responsible person.
  2. External communication - The communication with external stakeholders can be accepted and response to external messages can be carried out through official documents, mails, websites, faxes, or phones. EHS related matters can be communicated through these channels and the occupational safety and health person is responsible for any related suggestions or concerns.
Objective
Policy/
commitment
Responsibility

Objective

  1. The organization ensures implementation and continuous improvement through the cycle of "planning", "implementation", "checking" and "action" and maintains the suitability, accuracy, effectiveness, and integrity of the ISO 45001 management system.
  2. The processes of the ESH management system established and implemented by the organization and their interactions shall ensure continuous improvement and achievement of the expected results, including increase of the ESH performance.

Policy/commitment

Legal compliance, emphasis on commitment, continuous improvement, control of risk, enhancement of training, promotion of health, full participation, and self-management.

Responsibility

  • For the top management of the ISO 45001 management system, the Chairman appoints the President to take the responsibility for the operation and management of the management system. For any change of the top management, the Chairman acts in accordance with the administrative order.
  • The top management shall ensure that the management system is implemented and operates effectively in every respect of the requirements, and shall report the implementation performance of the management system at the management review meeting as a basis for review of the continuous improvement.

Responsibility

  • For the top management of the ISO 45001 management system, the Chairman appoints the President to take the responsibility for the operation and management of the management system. For any change of the top management, the Chairman acts in accordance with the administrative order.
  • The top management shall ensure that the management system is implemented and operates effectively in every respect of the requirements, and shall report the implementation performance of the management system at the management review meeting as a basis for review of the continuous improvement.

Rexon's goals

2023 goals

Acquired the ISO 45001 EHS system certificate at the end of 2023

Achievement statusof 2023 goals

Passed the ISO 45001 system certification and obtained the certificate at the end of November 2023.

Short-term Goals
(2024~2026)

Short-term goal: Fully implement the ISO 45001 occupational safety regulations and enhance safe working environment for the employees; starting from 2024, increase the annual EAP achievement rate by 5%, improve the health of the employees by 5%, and reduce occupational injury rate by 1%.

Long-term Goals
(2027~2030)

Long-term goal: Continue to maintain the operation of the ISO 45001 EHS system and promote the certificate renewal goal to an achievement rate of 100%.

Specific actions
in 2023

  • 2023 is the establishment and implementation year of occupational safety and health. As for safety and health, Rexon improved the equipment and environment of the workplace (such as replacement of personal protective equipment and purchase of new ventilation equipment). As for the environment and manufacturing process, Rexon continued to conduct risk assessment (air, water, waste, noise) in accordance with ISO 14001 to reduce negative environmental impact and promoted environmental protection activities to protect the resources on the earth.

Management
Measurement
Mechanism

  • The Company holds internal management review meetings on a regular basis every year, reports the performance and result related to annual ESH issues, and applies for support whenever needed.

Results

ISO 45001

decrease 38%

ISO 45001

Passed the ISO 45001 EHS management system verification and obtained the certificate.

decrease 38%

There were a total of 15 occupational incidents with a decrease of 38% from 23 in 2022.