Human Rights Protection
The value of human rights is universally recognized. FENC vows to protect employees’human rights and their interests.
In order to protect employees’ human rights and build an environment for adequate safeguard, FENC establishes and conducts relevant human rights policy in 2018. FENC not only comply with all local laws where it operates, but also support the International Bill of Human Rights, the International Labor Office Tripartite Declaration of Principles, the OECD Guidelines for Multinational Enterprises, the UN Universal Declaration of Human Rights, and the UN Global Compact to formulate and implement labor policies related to human rights protection. The scope of our policy applies to all business stakeholders including employees, subsidiaries worldwide, business partners, suppliers, contractors of FENC, and the communities in each operation base.
2018~2019 | FENC established the Human Rights Policy and promoted the policy among managers overseeing human rights implementation at all FENC sites. The managers, who have signed the commitment statement to abide by the policy, will promote the policy among employees through multiple channels to keep them aware of their rights. |
2020 | FENC conducted human rights due diligence (HRDD) at all Company sites. Based on FENC Human Rights Policy, the risk assessment is further divided into 8 categories of human rights risks. HRDD focuses on “the likelihood of risks” and “the degree of impact on the Company”. A survey was administered to identify human rights risks, followed by investigation to determine their impacts on the Company. All FENC employees are covered in HRDD, and improvement measures have been implemented by human resources supervisors at all sites based on the HRDD report to protect employees’ human rights. |
2021 | The Company continues to deepen human rights protection through the following actions: ・Board supervision: The SOP for reporting on FENC Human Rights Policy has been in place. At least once a year, the corporate governance manager reports to the Board on human rights issues. ・Regular management: The highest-ranking executives at FENC production sites present monthly special reports on major human rights issues, such as overtime and sexual harassment. ・Human rights education and training: FENC conducts human rights training for new recruits. For FENC sites in Taiwan, new recruits must sign FENC Human Rights Policy once the training concludes. In 2021, 285 employees signed the policy. 83% of the permanent employees in Taiwan have completed human rights related training. For overseas locations, human rights training for new recruits is conducted through the orientation and employee manual. |
2022 | In February 2022, FENC launched the human rights management project, expanded the human rights policy, and established community engagement policies to increase the breadth and depth of the management of human rights issues.
In May 2022, FENC conducted the annual human rights due diligence. The project was carried out through consulting firms, which collected and compiled data through open channels and administered risk assessment surveys among employees, suppliers and local residents. Seven key issues were derived out of the above referenced data, followed by an impact assessment to formulate corresponding mitigation and remediation strategies with quantified management targets.
In terms of management practices, FENC provides complete training on the human rights management procedures to managers, procurement personnel and public relations departments. On the external front, 83% of the suppliers have signed the Supplier Corporate Social Responsibility Commitment Statement. Looking ahead, FENC will continue to bring profound influence on human rights within the Company and the entire society.
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Framework for Human Rights Management
Item | Responsibility | Approaches and Frequency |
Board of Directors | The Chairman signs FENC Human Rights Policy, leads human rights protection efforts, provides resources and supports the management on the implementation of human rights protection. | Present the outcome of human rights due diligence as well as key implementation objectives to the Board on an annual basis through corporate governance managers. |
Human Resources Department under Headquarters | Implement human resources management systems, establish human rights policies and goals and create guidelines for the global human rights due diligence. | Present information regarding human rights risks and indicator tracking during the monthly human rights risk management meetings. |
Human Resources | Establish human rights implementation with procurement and production units, conduct review and propose remediation measures at the monthly meetings of each Business, investigate grievance claims and make improvements. | Review human rights implementation during the monthly meetings at each Business. |
Labor Unions | The union raises and discusses human rights issues during labor relations meetings from the employee perspective. | Conduct quarterly labor relations, pension committee and employee welfare meetings. |
Purchasing Department | FENC requests that suppliers sign Supplier Corporate Social Responsibility Commitment Statement. | Monthly report on Supplier Management Status to the management level. |
Production Sites | The majority of our company’s facilities are located within industrial zones. We regularly engage with the Industrial Zone Administration to monitor compliance with management regulations. For factories that are not situated in industrial zones, we actively interact with community residents to maintain positive relationships. We address issues related to noise, waste management, air pollution, water resource management, and wastewater discharge through regular testing and proactive communication. |
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Global emphasis on corporate human rights and anti-corruption policies are on the rise. At FENC, the Speak Up Policy has been established for its worldwide locations in accordance with international ESG standards. Through internal and external supervision, the Company will flourish under the shield of human rights protection. With goals, action plans and improvement measures set in motion, FENC is ready to fully implement its human rights endeavors.
The 2022 training on the overview and prevention of workplace violence had been held for all managers. On July 11, FENC conducted the training on human rights policy, human rights management as well as human rights risks mitigation and remediation measures. The training is based on FENC Human Rights Policy and external case studies and is designed for managers, procurement personnel as well as community-facing plant supervisors. On September 21, plant supervisors underwent training that targeted sexual harassment prevention and control. The total participant count for human rights promotion and training reached 42,214 in 2022.
FENC also provides training and promotion regarding its grievance mechanism and channels to protect stakeholder rights.
・Employees: Training is conducted through the labor union, welfare committee and monthly regulatory compliance meeting.
・Local Residents: FENC promotes human rights awareness during community engagement. Employees who live in the dormitory or the plant vicinity may also report human rights violations associated with FENC through the grievance channels.
・Suppliers: Human rights training is mandatory for suppliers of FENC to ensure their understanding of the Company’s human rights commitment and practices. Suppliers are also required to sign the Supplier Corporate Social Responsibility Commitment Statement, pledging to work with FENC towards human rights protection. As of the end of 2022, 83% of the suppliers have signed the statement.
FENC Human Rights Policy and Implementation in 2022
In order to protect employees’ human rights and build an environment for adequate safeguard, FENC establishes and conducts relevant human rights policy. FENC not only comply with all local laws where it operates, but also support the International Bill of Human Rights, the International Labor Office Tripartite Declaration of Principles, the OECD Guidelines for Multinational Enterprises, the UN Universal Declaration of Human Rights, and the UN Global Compact to formulate and implement labor policies related to human rights protection. The scope of our policy applies to all business stakeholders including employees, subsidiaries worldwide, business partners, suppliers, contractors of FENC, and the communities in each operation base.
Human Rights Policy | Implementation in 2022 |
No Forced Labor FENC eradicates all forms of forced labor and punishment. | The company does not force or coerce any person to perform labor services unwillingly and prohibit restricting the freedom of movement of any person, including prohibiting the seizure of any personal documents. There were no incidences of forced labor at FENC in 2022. |
Bans Child Labor FENC bans child labor. | FENC prohibits the employment of labor under the age of 16 in all operation bases and supply chains, and incorporates the prohibition of child labor into recruitment policies, and establishes procedures for handling child labor when it is discovered. FENC did not employ any child labor in 2022. |
Working Hours, Wages and Benefits FENC ensures working hours, overtime hours, minimum wage, living conditions, and other benefits shall comply with applicable laws and adopt the relatively stricter alternative among local laws or international standards on measures. | FENC ensures working hours, overtime hours, minimum wage, living conditions, and other benefits shall comply with applicable laws and adopt the relatively stricter alternative among local laws or international standards on measures, including: 1. Working hours shall not beyond the maximum hours. 2. FENC promises to provide the minimum living wage. 3. Overtime pay shall not less than that required by law. 4. FENC follows a transparent salary policy and does not use salary deductions as punishment. 5. FENC protects employees’ paid leaves, special care leaves and the mandatory benefits according to laws. 6. FENC ensures to provide the living condition which meet employees’ basic needs. There were no disputes or grievance claims regarding overtime at FENC in 2022. |
Freedom of Association and FENC respects employees' freedom of speech and association, and the right to collective bargaining. | FENC respects and supports the employees’ rights to choose, form, join or refuse to join labor union or any other forms of employee organization. FENC continues to abide by the collective bargaining agreements made between the labor unions and FENC production sites in 2022. |
Diversity, Equality and Anti-discrimination FENC eliminates discrimination in hiring and employment. We guarantee equal pay and a working environment of equality, diversity and safe. | FENC treats all employees with respect and values diversity as well as equality. Employment at FENC does not discriminate on the basis of race, nationality, class, language, ideology, religion, political affiliation, place of ancestry, place of birth, gender, sexual orientation, age, marital status, physical appearance, facial features, mental and physical disabilities, horoscope, blood type or past union membership. FENC ensures a workplace that is free of sexual, mental, physical, and verbal harassment, abuse, and threat. We dedicate to building a workplace with respect, safety and equality, and are against all forms of discrimination, bullying, or differential treatment. There were no disputes or grievance claims regarding discrimination at FENC in 2022. |
Maternity Protection FENC protects and supports female employees. | FENC is committed to protecting the rights of motherhood and building a work system and environment that is friendly to employees of both genders. There were no disputes or grievance claims regarding maternal protection at FENC in 2022. |
Privacy Protection FENC protects employees’ personal information and privacy rights. | FENC ensures the safety of personal information. There were no disputes or grievance claims regarding privacy protection at FENC in 2022. |
Employment Stabilization FENC protects employees' right to work. | FENC protects employees from mandatory redundancy and provides assistance to those who are suffering from the situation. There were no disputes or grievance claims regarding employment stability at FENC in 2022. |
Health and Safety FENC is committed to prioritize all stakeholders’ health and safety. | FENC is not only committed to provide health and safety workplace for its employees (including contractors) and is also committed to operate safely in order to ensure the health and safety of all relevant stakeholders. There were no disputes or grievance claims regarding health and safety at FENC in 2022. |
The human rights management procedure at FENC includes the establishment of the Human Rights Policy, human rights due diligence, mitigation and remediation measures for salient human rights issues, human rights training and grievance mechanism. The scope covers the employees, subsidiaries, business partners, suppliers, contractors as well as residents near FENC sites. When expanding, investing in or adding new production sites, FENC takes local human resources policies as well as the human rights risk assessment from the local community and suppliers into account.
Enhancing FENC Human Rights Policy and Human Rights Due Diligence
Management | Unit |
Defining the Scope of Human Rights and the Highest Commitment FENC assesses the current human rights management at all Company sites, conducts dialogue with managers at Corporate Management, procurement units and production sites, and fulfills human rights commitment with senior managers. | Corporate Management, procurement units and production sites |
Identifying Human Rights Risks
FENC compiles and lists human rights issues based on international standards, including:
| Human Resources Department |
Analyzing Human Rights Risks and Collecting Data
Upon defining the human rights risks, the procurement, human resources and production units assess the risks, establish benchmarks; set up implementation measures and proposals for risk assessment; conduct discussions on gathering feedbacks from stakeholders including employees, suppliers and communities. | Led by the Human Resources Department, conduct human rights risk assessment with applicable units, such as the business relations, plant affairs and human resources units at each production site as well as the Purchasing and Secretarial Departments. |
Conducting Due Diligence with Mitigation and Rectification
FENC conducts human rights training regarding key risks, performs human rights due diligence, establishes improvement measures based on the risk assessment and forms task forces as well as mechanisms for regular reviews and rectification. | Led by the Human Resources Department, establish mitigation and remediation measures with applicable units, such as the business relations, plant affairs and human resources units at each production site as well as the Purchasing and Secretarial Departments. |
Human Rights Due Diligence
The 2022 human rights due diligence was conducted through stakeholder surveys of employees, procurement units, community-facing units at FENC production sites, suppliers and local residents to compile and rank relevant human rights issues. Two aspects of the risk matrix for Risk Assessment regarding labor issues carried out for existing operations or projects are importance of occurrence and likelihood. In addition, public information as well as minutes from internal management meetings, labor management meetings, supplier engagement meetings and community engagement meetings were reviewed. All materials were presented to the high-level management for evaluation.
Scope of Salient Human Rights Issues Survey
Stakeholder | Issues |
Employee | Child labor, free choice of profession and employment/forced or compulsory labor, freedom of speech, health and safety, minimum wage/living wage, freedom of association, collective bargaining, privacy, acceptable living conditions, physical punishment and penalty, eliminating long working hours, anti-discrimination/anti-harassment, and equal pay for equal work. |
Supplier | |
Local Residents | Air pollution, noise, waste management, water resources management, wastewater discharge, free choice of profession and employment/forced or compulsory labor and freedom of speech. |
Outcome of 2022 Human Rights Risk Assessment
Stakeholder | Salient Human Rights Issues |
Employee | ►Eliminating long working hours ►Health and safety |
Supplier | ►Health and safety |
Local Residents | ►Noise ►Waste management ►Air pollution ►Water resources management and wastewater discharge |
Human Rights Risk Identification and Impact Assessment
FENC’s Role | Value Chain Nodes | Value Chain Affected | Salient Human | Impact of Risk Issue | Impact Assessment Mechanism |
Employer | Operational | Employee | Eliminating long working hours | Inadequate labor conditions and the inability to provide an environment that protects workers’ lives, health and safety, for instance, tightly scheduled shifts, long consecutive hours, wages insufficient for living expenses, unequal pay and a hazardous workplace. | 1. Monthly assessment is conducted on regulatory compliance with applicable units confirming compliance with regulatory and Company rules, and compiling attendance records. 2. The monthly risk management meetings are held to examine overtime as well as gaps between workers’ wages and the Company average. 3. Wage equality is reviewed annually, and results are posted on the Company website. 4. FENC provides regular health checks. Employee satisfaction surveys are conducted every two years with reviews over work conditions, compensation and benefits. Company policies are modified accordingly based on the results. 5. Access to FENC’s multilingual grievance mechanism is open 24 hours with the option of making anonymous claims. The mechanism gives the Company insights into internal issues in order to respond with speed and make policy adjustments. |
| Health and safety | |||||
Responsible | Upstream | Supplier | Health and safety | Health- or life-threatening labor conditions that cause workers to seek medical treatment in order to restore health fully or partially. | 1. Review suppliers through document reviews or on-site evaluations. 2. A grievance channel for suppliers is provided through the procurement system from the FEG Purchasing Center. |
Local | Operational | Local Residents | Noise | Violations of the mandated noise level due to plant operation, which may severely damage human health and activities from prolonged noise exposure. | 1. The noise testing is conducted regularly. 2. The air quality is monitored regularly. 3. Waste treatment and disposal are tracked regularly. 4. Waste treatment suppliers are evaluated and audited. 5. Water quality and effluent discharge flow are monitored. 6. The grievance mechanism is in place. |
| Waste management | The likelihood of floods due to drainage pipes clogged by waste materials; air and water pollution caused by toxic substances from incinerated waste during Company operation or raw material procurement by suppliers, where improperly or non-environmentally treated waste may impact the surrounding natural habitat and endanger human health. | ||||
Air pollution | Respiratory and other illnesses, damages to the surrounding habitat or impacts on human health and daily activities due to air pollution caused by Company operation. | ||||
| Water resources management and wastewater discharge | Water waste and effects on the water rights of others or other regions resulted from inadequate water resources management during Company operation; impacts on the aquatic ecosystem, water quality and the relationships between the Company and the community as well as other water users due to water pollution caused by wastewater generated during Company operation, which lead to damages to the natural habitat as well as human health and activities. |
Mitigation and Remediation Measures for Salient Human Rights Risks
Given the vast number of FENC locations overseas, FENC is committed to taking corrective actions to remedy affected parties when it has been identified that we have caused or contributed to human rights impacts. The measures stated below focus on the implementations carried out by the Headquarters in Taiwan. All FENC sites comply with local and international labor regulations regarding the mitigation and remediation measures of the salient human rights issues. Actual implementations are customized and adjusted to comply with local requirements.
Value Chain | Salient Human Rights Issues | Mitigation Measure | Remediation Measure | Management Goal |
Employee | Eliminating long working hours | 1. Recruit a sufficient number of workers to meet production demand and prevent long working hours due to labor shortages. 2. Establish a comprehensive working hour management system and set overtime alerts. 3. Ensure the Company wages are compatible with the cost of living in Taiwan. | 1. Track worker schedules to ensure workers are given one day of regular leave every seven days with maximum 12 working hours daily and a monthly maximum of 46 hours of overtime. 2. Discuss the issue of long working hours during major meetings and call managers’ attention to the matter; present the causes and solutions; discuss the need for additional recruits to align with management goals. 3. Propose wage adjustment recommendations when the wages offered by the Company are lower than the market salaries in Taiwan. | 1. 0 grievance claims regarding long working hours. |
| Health and safety | 1. Establish occupational safety and health management policies. 2. Incorporate the occupational safety and health management system. 3. Establish occupational safety and health committees at all FENC sites with quarterly meetings to ensure safety and health management. 4. Provide occupational safety and health training for workers. 5. Establish rules governing hazardous chemical management and conduct regular testing on chemicals and hazardous substances. | 1. Conduct investigation and cause analysis and propose improvement and prevention strategies. 2. Provide health education and care with improvement recommendations for workers with areas of concern in their health reports. 3. Strictly enforce the installation of protective equipment on site; ensure that personal protective equipment is worn by workers properly; increase facilities protection; strengthen safety education among workers. 4. Arrange the work schedules for workers with high health risks to avoid excessively frequent shifts and overtime. | 1. Implement the occupational safety and health management system. 2. 100% completion rate regarding occupational safety and health training. 3. 0 occupational safety and health violations. | |
Supplier | Health and safety | 1. Require suppliers to manage employee health and safety in accordance with the Supplier Corporate Social Responsibility Commitment Statement. 2. Conduct supplier risk assessment on labor practices and human rights; identify suppliers posing substantive or potential negative impacts; provide improvement assistance or terminate contracts depending on severity. | Conduct site inspections in accordance with the regulations on auditing/safety and health management; require suppliers violating occupational safety to make improvements within a given period; track improvement progress. | 1. 100% signing rate for Supplier Corporate Social Responsibility Commitment Statement. 2. 100% improvement rate on the negative impacts posed by suppliers. |
| Local Residents | Noise | Conduct regular noise testing in the surroundings. | 1. Test the noise level within the plant to confirm the source of the noise and eliminate the source immediately if it is within the plant premise. 2. Require improvement measures from the department responsible for the noises. | 1. 0 grievance claims regarding noises. 2. Test the noise level within the peripheral boundary annually to ensure regulatory compliance. |
| Waste management | 1. Establish waste management procedures. 2. Incorporate recycling management for packaging materials to reduce waste. 3. Implement avoidance and promote waste classification, recycling and reuse. 4. Scrutinize the credentials of waste treatment suppliers. 5. Track waste disposal through GPS. 6. Conduct random checks on the waste treatment and disposal process. | Establish emergency response plans and activate such plans immediately when contamination occurs to minimize the contaminated area. |
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Air pollution | 1. Conduct regular testing on air pollutant emissions and report to the authority. 2. Conduct regular retraining for designated personnel. 3. Promote air pollution prevention and control. 4. Establish air pollution management targets. 5. Incorporate air pollution prevention equipment to reduce air pollutant emissions. | 1. Establish emergency response plans and activate such plans immediately during polluting incidents to minimize the areas polluted. 2. Commission qualified agencies to test air quality regularly. | 1. 0 incidents regarding the emission of gaseous pollutants. 2. Test the exhaust gas regularly to ensure compliance with governmental standards. | |
| Water management and wastewater discharge | 1. Implement water resources management and promote water conservation among all employees. 2. Incorporate innovative effluent treatment facilities; increase water recycling and reuse rates; reuse the reclaimed water consistently; reduce effluent discharge. 3. Install wastewater treatment facilities and improve wastewater treatment; monitor the effluent flow and quality regularly to ensure regulatory compliance. 4. Implement water resources risk identification and establish water resources management targets. 5. Conduct regular training for management personnel and help them obtain applicable certifications. | 1. Establish a reporting mechanism for potential or actual wastewater incidents; stay alert on the progress of such incidents and report to the authority in a timely manner; track and improve the discharge process. 2. Commission qualified agencies to conduct regular testing. | 1. 0 wastewater discharge incidents. 2. Test effluent quality annually to ensure compliance with governmental standards. 3. 0 discharge of production wastewater. |
FENC Local Community Engagement Policy
Far Eastern New Century has established a local community engagement policy, committed to maintaining good communication with nearby residents and local groups. During engagements with the local community, we thoroughly collect, record, and address issues that are important to stakeholders. We proactively advocate the company's corresponding policies to the neighborhood, ensuring that residents understand Far Eastern New Century's commitment and determination to "take from society and give back to society". In addition, Far Eastern New Century, with the theme of "circular economy," actively participates in numerous community events across various factory locations. This not only enhances the image of corporate sustainability but also allows consumers to understand and identify with the concept of the circular economy, encouraging more people to participate in the recycling process. Please see “Non-profit Cause” for more information.
Goals | Since the establishment of FENC, we have considered the local residents and local organizations of each operating base as important stakeholders. To strengthen the relationship with communities, FENC formulates the policy to show the insistence on sustainable business operation. In addition to express the company's emphasis on related issues, it can also be used as a guideline for building the sound channels of communication with communities. |
Commitment |
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Competent Authority | The competent authority of each operating base of FENC to implement local community engagement includes the management department, business relations office, public relations office, etc. And we report the engagement situation to the board of directors regularly. |
Management principle |
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Stakeholder Engagement and Speak Up Policy
We engage with stakeholders regularly to identify significant, industry-specific, or enterprise-specific human rights issues and work towards improvement.
Statistics on Communicating Human Rights Issues with Stakeholders in 2023
Stakeholders | Communication Frequency | Key Points of Communication |
Employees | 4,461 | We collect feedback from employees and the union through the Retirement Fund Committee, Welfare Committee, and Labor-Management Meetings. We also conduct educational training and advocacy activities to ensure employees understand the Company regulations and related rights. Additionally, we use satisfaction surveys to identify areas for improvement as suggested by employees. Furthermore, we have set up a 24-hour complaints/suggestion mailbox on the company website to gather feedback from employees on areas where the company falls short, enabling adjustments to internal management rules. In 2023, we received two complaints from employees related to bonuses and benefits, all of which were resolved after communication. |
Suppliers | 8,206 | We engage in dialogues with our suppliers regarding human rights issues. Our aim is for suppliers to adhere to the standards set by Far Eastern New Century and integrate them into their management systems. Through education, training, drills, and awareness campaigns, we ensure that suppliers understand these standards. Additionally, regular visits and exchanges allow us to assess and audit their compliance. We have also established a complaint/feedback channel to collect input from supplier employees. In 2023, we did not receive any complaints from our suppliers. |
Local Community Residents | 251 | The Company maintains a positive relationship with community residents. Regularly, we collect information on issues such as noise, waste management, air pollution, water resource management, and wastewater discharge. We actively involve community residents in monitoring various metrics related to our operations. In 2023, we received 11 complaints from community residents, and all of them were resolved through effective communication. |
