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 (SWP) using People Analytics (PA). 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.
International Textile Manufacturer Federation (ITMF) and International Apparel Federation (IAF) codeveloped Social & Labor Convergence Program (SLCP) with global brands, manufacturers and accredited hosts. The program conducts verifications on recruitment and hiring; working hours; wages and benefits; employee treatment; employee involvement; health and safety; termination; management system. Six dyeing and finishing plants under FENC have passed third-party SLCP verification and been recognized by brand customers. The verification is an endorsement to FENC’s non-stop progress in the management and protection of human rights and employee welfare.
The FENC Human Rights Policy has been signed into effect by the Chairman, and the policy implementation is under direct Board oversight. Each year, the corporate governance managers present the status report to the Board and publish the report on FENC’s official website. The procedures of human rights management include the establishment of the human rights policy; human rights due diligence; mitigation and remediation actions for salient human rights risks; training on human rights issues; operation of the grievance mechanism. Ongoing efforts have been devoted to the optimization of systems and indicators, and the scope of the assessment has been expanded as follows:
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When investing in new operation sites and forming new business relations with mergers, acquisitions, joint ventures, suppliers or contractors, FENC conducts the human rights due diligence to assess the implementation of human rights protection. The results are vital for guiding investment decisions and confirming supplier qualifications. When expanding existing or adding new production sites, the human rights risk assessment is also taken into consideration to evaluate local personnel policies, supplier management and the influence of the local community on the investment and expansion projects. FENC is committed to passing customer audits regarding human rights and labor conditions across its production sites with a 100% approval rate. Aligning with international standards and the principles of corporate social responsibility, FENC is determined to create a sustainable and responsible business model.
Strengthening Human Rights Policy and Human Rights Due Diligence Procedures
Work Focus | Units |
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, and in collaboration with relevant units (such as the Business Relations Office at production sites, the Plant Affairs Department, and HR units, as well as the Procurement Department and the Secretariat), a human rights risk assessment process will be conducted. |
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, and in collaboration with relevant units (such as the Business Relations Office at production sites, the Plant Affairs Department, HR units, as well as the Procurement Department and the Secretariat), mitigation and remediation measures will be formulated. |
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. When forming new business relations, such as mergers, acquisitions, joint ventures or investing in new operation sites, the department conducts human rights due diligence to confirm the status of human rights implementation as a basis for evaluation and subsequent improvement. | The department presents information regarding human rights risks and the tracking of risk indicators during the monthly 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. |
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Human Rights Policy
FENC is dedicated to safeguarding the basic human rights of its employees and creating an environment where human rights are fully protected. To align with international standards, FENC adheres to and advocates 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.
Progress and Measure of FENC Human Rights Policy
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FENC also examined the implementation of the Human Rights Policy across its global locations during the reporting year. The review identified one violation against the local regulatory limit on maximum working hours, as well as seven grievance claims regarding manager’s supervisory approaches and issues related to the corporate systems, all of which have been resolved after internal investigation and engagement efforts, and the cases were closed. In addition, FENC received 17 comments from the dialogue meetings and comment boxes, and the feedback has been incorporated into the human rights management procedures. These efforts represent the importance FENC has attached to ensuring open dialogues between labor and management.
FENC Human Rights Policy and Implementation in 2024
Human Rights Policy | Implementation in 2024 |
No Forced Labor - FENC eradicates all | 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 and human trafficking at FENC in 2024. |
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 2024. |
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, 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 In 2024, one violation was identified against the local regulatory limit on maximum working hours. The plan to reduce overtime is in progress through conducting the talent inventory and making work adjustments. |
Freedom of Association and Collective | 1. 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. 2. 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 2024, FENC received 17 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 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 2024, FENC was certified by the Taipei City Government as an enterprise friendly to the middle-aged and elderly and selected as one of the Top 100 DEI Enterprises for the Strong Generation by Business Weekly. All regulatory requirements were met, and there were no human rights violations during the reporting year. |
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 2024. |
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 2024. |
Employment Stabilization - FENC | 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 2024. |
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 2024. |
