Human Rights Protection

The value of human rights is universally recognized. FENC vows to protect employees’human rights and their interests.

FENC has constructed the framework for human rights protection while its global management network for human resources takes shape. The Company’s human rights policies and regulations are bolstered by the human resources systems across its worldwide locations and communicated through the local language to ensure employees’ full understanding of FENC’s commitment to labor rights. Access to policy details is provided through a multitude of channels, such as internal training, company websites and email notifications with adequate training programs and support to ensure policy effectiveness.

FENC supports its workforce with a globalized human resources and human rights blueprint with localized systems, strengthening competitiveness through strategic workforce planning using people analytics. By applying data-driven approaches, the Company evaluates changes in the external environment, identifies trends in the labor market, predicts future employee needs and formulates recruitment and retention strategies while engaging in long-term planning to keep its human capital in line with the business development strategies. The mid-term objectives zoom in on talent training and cultivation, and for the long term, the focus is to improve employee satisfaction, develop the global talent pool and conduct human rights due diligence on a regular basis.

FENC Human Rights Policy is signed by chairman and is published on the Company’s official website. 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.

FENC conducts human rights due diligence when investing in new operation sites to confirm the level of human rights protection at the subject site. The due diligence serves as a basis for investment evaluation and a baseline for post-investment improvements. In 2023, FENC did not receive any grievance claims regarding human rights violations from employees, suppliers or local residents.

Enhancing FENC Human Rights Policy and Human Rights Due Diligenc

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: Universal Declaration of Human Rights (UDHR) United Nations Global Compact (UNGC) United Nations Guiding Principles on Business and Human Rights (UNGPs) International Labor Organization Conventions (ILO Conventions) International Bill of Human Rights Social Accountability 8000 (SA 8000) Responsible Business Alliance (RBA)	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 Management Framework

Entity	Responsibility	Reporting and Frequency
Board of Directors	The Chairman, who has signed the FENC Human Rights Policy, leads human rights efforts, provides resources and supports the management level to implement human rights protection programs.	Corporate governance managers present the outcome of human rights due diligence and key implementation objectives to the Board on an annual basis.
Human Resources Department, Headquarters	The department implements human resources management systems and establishes human rights policies, goals and guidelines for the global human rights due diligence.	The department presents information regarding human rights risks and the tracking of risk indicators during the monthly human rights risk management meetings.
Human Resources Unit Under Each Business	The unit establishes human rights implementation programs with procurement and production units. At the monthly meetings of each Business, the unit conducts review, proposes remediation measures, investigates grievance claims and makes improvements.	The unit reviews human rights implementation at the monthly meetings of each Business.
Labor Union	The labor union raises and discusses human rights issues from the employee perspective during labor relations meetings.	The labor relations, pension committee and employee welfare meetings are held quarterly.
Procurement Unit	The unit requires suppliers to sign the Supplier Code of Conduct and Corporate Social Responsibility Commitment Statement.	The unit reports on supplier management to the corporate governance managers during the monthly meetings.
Production Site	The majority of FENC production sites are located in industrial areas, and they monitor the management system through regular engagement with management entities at the industrial areas. Production sites located in non-industrial areas conduct regular community engagement and initiate testing and dialogues regarding issues such as noise, waste management, air pollution, water resources management and wastewater discharge.	All production sites engage and maintain rapport with local residents and organizations by soliciting their feedback and suggestions and responding with improvement plans to reduce the impact of production activities on the local communities. All production sites conduct social engagement programs such as meetings, visits, exchanges and educational campaigns among local residents. To mitigate and improve potential significant impacts on local communities resulting from existing and new operations, FENC is committed to conducting pre-operation dialogues with local residents and organizations through social engagement activities, such as meetings, visits, exchanges and educational campaigns, to provide mitigation and improvement.

Human Rights Policy

To safeguard basic human rights and create an environment that offers full human rights protection, FENC abides by and supports the International Bill of Human Rights, International Labor Office Tripartite Declaration of Principles, OECD Guidelines for Multinational Enterprises, UN Universal Declaration of Human Rights and UN Global Compact. In 2018, the Company enacted the FENC Human Rights Policy, which applies to all employees, subsidiaries, business partners, suppliers, contractors and local communities where FENC operation sites are located. The policy is signed into effect by the Chairman and under direct supervision of the Board. Each year, the human rights implementation is presented to the Board by the corporate governance managers.

The Company communicates with employees regarding the specifics of FENC Human Rights Policy through multiple channels to raise employee awareness of their rights. In 2022, the Company refined the Human Rights Policy and established engagement policies with local communities to expand the breadth and depth regarding the management of human rights issues.

FENC Human Rights Policy and Implementation in 2023

Human Rights Policy	Implementation in 2023
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. FENC established the anti-forced labor policy with regular updates to ensure compliance with local regulatory requirements and customer standards. There were no incidences of forced labor at FENC in 2023.
Bans Child Labor - FENC bans child labor.	The hiring of child labor under the age of 16 is banned at all FENC sites and throughout its supply chain. The ban is incorporated into the Company’s recruitment policies, and the protocol is established to address incidences when the hiring of child labor occurs. FENC did not employ any child labor in 2023.
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: Working hours shall not beyond the maximum hours. FENC promises to provide the minimum living wage. Overtime pay shall not less than that required by law. FENC follows a transparent salary policy and does not use salary deductions as punishment. FENC protects employees’ paid leaves, special care leaves and the mandatory benefits according to laws. FENC ensures to provide the living condition which meet employees’ basic needs. There were no disputes or grievance claims regarding overtime at FENC in 2023.
Freedom of Association and Collective Bargaining - FENC respects employees' freedom of speech and association, and the right to collective bargaining.	Freedom of speech: The company established the Speak Up Policy with a comprehensive grievance mechanism in place, including a 24-hour online platform where grievance claims are accepted in Chinese, English, Japanese, Filipino, Malay and Vietnamese. The claim may also be filed anonymously to protect employees from any adverse impacts as a result of speaking up. Freedom of assembly, association and speech: FENC respects and supports employees’ right to choose, establish, join or refuse to join labor unions or other forms of employee organizations. FENC also respects the establishment and operation of labor unions. Employees have the freedom to voice their rights and propose improvement for FENC through the labor union, and employee representative meetings are held annually. In 2023, FENC received 33 comments from the dialogue meeting and comment box, and all of them have been addressed. There were no grievance claims regarding the freedom of assembly, association and speech, and FENC continues to abide by the collective bargaining agreements made between the labor unions and its operation sites.
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. In 2023, FENC was certified as an enterprise friendly to the middle-aged and elderly by the Taipei City Government. The Company was also selected as one of the nine companies featured for the Healthcare and Career Development Program for the Middle-Aged. There were no disputes or grievance claims regarding discrimination at FENC in 2023.
Maternity Protection - FENC protects and supports female employees.	FENC is committed to building gender-friendly systems and environments at the workplace. Breastfeeding rooms are provided at all FENC sites to offer comfort to female employees with breastfeeding needs. Flexible working hours are also provided for employees who are pregnant or with underage children. There were no disputes or grievance claims regarding maternal protection at FENC in 2023.
Privacy Protection - FENC protects employees’ personal information and privacy rights.	FENC ensures the protection of personal data in accordance with local laws and regulations. All documents that require personal data must be confirmed by FENC’s legal units and the information must be properly secured. There were no disputes or grievance claims regarding privacy protection at FENC in 2023.
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. All FENC sites hold labor relations meetings on a regular basis and have comprehensive grievance policies in place. The Company conducts bilateral communication and policy promotion with employees through labor unions. There were no disputes or grievance claims regarding employment stability at FENC in 2023.
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. FENC offers pre-boarding medical examinations, annual health checkups, occupational health assessments, lectures and follow-up health checks. The Company also provides health evaluation and forums for employees aged 45 and above. There were no disputes or grievance claims regarding health and safety at FENC in 2023.