Human Rights Policy-Career-Coretronic Corporation

Issue Date：December 28, 2022

Human Rights Policy

As an electronic industry citizen, Coretronic agrees to comply with the Responsible Business Alliance (RBA) Code of Conduct, fulfills corporate social responsibility to protect the basic human rights of all employees, and recognizes and abides by various international human rights agreements, including the Universal Declaration of Human Rights (UDHR), The United Nations Global Compact (UNGC), The United Nations Guiding Principles on Business and Human Rights (UNGPs), and International Labour Organization (ILO). We further agree to eliminate any acts that infringe upon or violate human rights and state our aim to treat and respect all employees with justice and equality.

The Coretronic Corporation Human Rights Policy applies to Coretronic and all Coretronic business locations. Coretronic complies with the laws and regulations relating to labor and gender equality at work of the location where Coretronic operates and establishes measures for human rights protection, labor policies, and implementation. The Coretronic Corporation Human Rights Policy includes:

Diversity, inclusion, and equal opportunities

Coretronic maintains a work environment with gender equality and diversity; upholds the open and fair principle; and ensures no discrimination based on age, gender, disability, ethnicity or national origin, religion, political affiliation, or pregnancy. Coretronic also eliminates forced labor and employment/work discrimination of all forms, prohibits harassment, respects privacy, and is committed to creating a work environment with equal opportunities, dignity, safety, and equality, and free of harassment and unlawful discrimination.

Targets	The recruitment, hiring and wages of employees will not be based on or affected by their race, class, language, thought, religion, political party, place of birth, gender, sexual orientation, age, marital status, appearance, physical or mental disability or past labor union membership Ensure the development opportunities for ethnic minorities, without affecting operating efficiency and overall fairness Reveal the aforementioned equality commitments in the "Operating Procedures for Employees Recruitment"
Risk Assessment	Unless it is necessary for job duty implementation, Coretronic will prevent any unlawful discrimination according to its internal control procedures, starting from the recruitment process For the aspect of employees management, we value the importance of "employees’ capability and suitability" and the irrelevant personal characteristics will not be used as management indicators
Approaches	Regularly review the ratio of age and gender to maintain diversity and equality, provided that the objective factors are equal Employees can report issues in real time through various channels such as the 8585 hotline and mailbox, employees’ physical feedback box, employees’ free service hotline, EIP employees exclusive website, employees’ discussion forum, labor and management meeting, and welfare meeting, etc Reveal the implementation results of the review lists in the annual CSR Report
Improvement Measures	Review the tolerance of diversity and equality of opportunity at all domains in accordance with the practical management; and review the working environment and regulations at all time in compliance with government laws and environment changes in the society For any violations to the" Coretronic’s Human Rights Policy," it is necessary to conduct improvement measures with the supervisor and recover the employee's rights
Performance in 2021	No reports of discrimination have been reported. In 2022, the starting salary for both male and female entry-level staff (direct staff) is NTD 25,250, which is in line with Taiwan’s legal minimum wage standard. In terms of gender, the employee ratio of male to female is about 3:2, which is related to the nature of the jobs; the ratio of salaries for the same job category and same performance is about 1:0.982, almost reaching equal pay.

No child labor

Coretronic abides by local laws and regulations governing the minimum age of employment and ensure no child labor.

Targets	The applicants who are under 16 years old will not be recruited for any of the Company’s positions in order to protect the growth and development opportunities for the youngsters, except for the industry-education cooperation internships that are conducted in accordance with the government regulations; the aforementioned commitments are stated in the "Operational Procedures for Employees Recruitment" and related process documentations
Risk Assessment	The preceding principle of prohibiting child labor is stated in the data sheet and process documentation for employee recruitment
Approaches	Applicants should provide their age information on the recruitment sheet. No interviews will be arranged for applicants who are under the age of 16 The recruited employees must provide relevant identification documents (such as ID card, driver's license, national health insurance card, proof of educational diploma, etc.) on the on-board day to verify that they are over the age of 16 before official recruitment For the industry-education cooperation internships that are conducted in accordance with the government regulations, the intern students who are under 16 years of age must submit the agreement of their legal guardian before entering the factory for internship
Improvement Measures	For the industry-education cooperation internships that are conducted in accordance with the government regulations, the intern students who are under 16 years of age must not engage in any heavy or dangerous work duties
Performance in 2022	Strictly abide by the principle of prohibiting child labor. The number of full-time employees under 16 years old is zero. All outsourcing units abides by the rules of non-employment of child labor, including industry-university cooperation, summer internship employees.

Compliance with minimum wage

Coretronic provides employees with pay equivalent or even superior to the mandatory minimum wage and employees benefits.

Targets	All employees' wages are in compliance with the local laws and regulations and meet the basic salary level based on the business operating location, and the social insurance will be conducted in accordance with the laws and regulations, to ensure the welfare and well-being of employees Offer insurance and welfare benefits beyond the laws and regulations, to provide extra care for employees The aforementioned commitments are stipulated in the “Work Regulations of Coretronic”
Risk Assessment	The wages of new employees are based on the "Salary Management Regulations" and all starting salaries for all jobs/positions of the Company are better than the minimum wage stipulated in local laws and regulations
Approaches	New employees need to sign a job offer notice on the on-board day, in which the salary is stated to ensure that the employment terms agreed by both parties meet the laws and regulations The monthly salary payout shall provide breakdown details and calculation to ensure that the content of the payment is in compliance with the laws and regulations Review the wage of internal staff on a regular basis to ensure it is in compliance with the updated minimum wage announced by the government and the wages of all employees are in compliance with the laws and regulations
Improvement Measures	Review the wage of internal staff on a regular basis to ensure it is in compliance with the updated minimum wage announced by the government; if the wage of employees is lower than the minimum wage that will take effect, the wage of employees shall be adjusted in time to be in compliance with the laws and regulations Regularly review salary standards and specifications with reference on salary standards on the market, to ensure that the salary standards of the Company meet the market standards
Performance in 2022	The starting salary for both male and female entry-level staff (direct staff) is NTD 25,250, which is in line with Taiwan’s legal minimum wage standard.

Reasonable working time

Coretronic establishes a legal and reasonable working time management plan and periodically review and manage employee attendances.

Targets	Stipulate a working hour system and management plan in accordance with the local laws and regulations based on the business operating location, to protect the physical and mental health of employees and their life arrangements For the demands of business operations, make overtime arrangements based on employees’ agreement and in accordance with the laws and regulations; and provide overtime pay or compensatory day off as compensation based on the desire of the employees The aforementioned commitments shall be stated in the “Work Regulations of Coretronic,” “Management Regulations of Work Time,” “Overtime Management Regulations” and related process documentations
Risk Assessment	Create attendance management system, overtime plan and management system according to the aforementioned commitments of work time The information system will immediately prohibit any overtime plan if the overtime arrangement does not meet the regulations The supervisor of all departments are responsible for the employees’ attendance and overtime arrangement to care for the physical and mental health of employees and ensure that they are in compliance with the laws and regulations
Approaches	If a job attendance is identified as not meeting the regulations by the attendance system, a "notice of abnormal attendance" will be issued to the employee and his/her direct supervisor, to control the potential risk in a timely manner If an overtime arrangement proposed by the employees is identified as not meeting the regulations by the attendance system, a warning message will be issued and the overtime plan will not be granted If the employees’ accumulated attendance or overtime hours is close to the limit stipulated in the regulations, a "reminder of abnormal attendance" will be issued to the employee and his/her direct supervisor
Improvement Measures	Submit the overall attendance report to the supervisor on a regular basis and indicate the items that have the potential risk of working hours, to help the supervisor make manpower and work arrangements
Performance in 2022	Coretronic offers employees a "golden travel week" as a holiday every year, providing 7 days of flexible leave for ample rest. Night broadcastings and patrols are arranged to prevent excessive working hours of employees. Attendance and Working Hours" system promptly reminds our employees and their supervisors about their attendance status to prevent overworking hours.

Healthy and safe workplace

Coretronic values workplace safety and health, hoping that all employees can work in a healthy, safe, and humane environment and maintain mental and physical health. Building a healthy and safe workplace and maintaining zero occupational accident are the goals of all plants in Taiwan.

Targets	It is the Company's responsibility to continuously care for the employees’ health. The Company actively promotes various health activities to improve employees’ health and evaluate the effectiveness and plan improvement strategies after the health activities, so that all employees will be able to receive comprehensive health care as we are dedicated to creating a healthy, safe, comfortable and friendly working environment As for the aspect of a safe working environment, the "Occupational Safety and Health Committee" was established and it is responsible for review and promotion of annual goals regarding occupational safety and health affairs, to continuously promote a safe working environment and prevention of occupational disasters
Risk Assessment	In order to effectively reduce employees’ risk of exposure to hazards and occupational diseases, the Company stipulated the operating instructions in response to the emerging health issues at the workplace in the Occupational Safety and Health Act such as motherhood, human factors engineering, overloading and illegal violations, and provides personal health advice and related improvement measures to ensure the health of employees As for the aspect of safe working environment and management, in addition to continuously promoting energy savings, carbon reduction and reduction of industrial waste in the factory areas, the education and training are conducted on a regular basis, to enhance employees' awareness of occupational safety and health
Approaches	As for the aspect of health protection, a questionnaire evaluation is conducted every two years to analyze and identify the high-risk groups and appointments with medical doctors will be made for consultation and advice For continuous improvement of the environment, safety and health management, the ISO 14001 environmental management system, OHSAS 18001 and CNS 15506 Taiwan occupational safety and health management systems were established to achieve the goals of "implementation of risk management, prevention of disasters and unhealthy circumstances, enhancement of employees' safety and health awareness, creating a safe and comfortable working environment, prevention of pollution, industrial waste reduction and recycling, improvement of recycling efficiency, and commitment to becoming a green corporate"
Improvement Measures	Conduct employees’ educational training, inspections on the working environment, internal/external audits and review of the entire company’s environment, safety and health operations, to ensure a safe working environment and effectively prevent occupational disasters Stipulate plans for the prevention of occupational disasters, with the inspection goals of improving the working environment and enhancing the safety measures of machinery and equipment, as well as to follow the regulations on accident management and practically carry out the investigation, analysis and improvement of the notification system
Performance in 2022	Artworks and music provided in public spaces to relieve work pressure and build up a healthy workplace. Hosted a competition of stair-climbing and Company-wide sports games in order to encourage a healthier lifestyle. COVID-19 pandemic prevention measures Occupational health and safety measures

Freedom of association

Coretronic respects the rights and interest of employees and entitle employees the freedom of association. Apart from establishing various clubs, we actively encourage employees to joint these clubs.

Targets	The Employees’ Welfare Committee (referred to as the Welfare Committee) was established to ensure the employees’ welfare and it selects employees as the representatives of the committee based on the regulations, to ensure the rights and benefits of employees In order to improve employees’ physical and mental health, enhance their work and life quality, we encourage the employees to participate in suitable recreational and welfare activities; and the employees’ rights of forming social clubs are ensured according to the "Welfare Committee’s Activity Management and Subsidy Regulations of Social clubs"
Risk Assessment	The social clubs can be formed after the required number of members have signed up and reported to the Welfare Committee
Approaches	The establishment and operations of the employees’ social clubs will be supervised by the Welfare Committee, which are based on the interests and benefits of employees, not to violate the good customs of the society and not to affect the rights and benefits of other employees The Welfare Committee provides funds for legally established social clubs and their organized activities, so that the employees’ social clubs can successfully operate
Improvement Measures	The establishment and activities of the employees’ social clubs will be supervised by the Welfare Committee on a regular basis; the Welfare Committee will correct any violations to employees' rights or other illegal affairs regarding the employees’ social clubs
Performance in 2021	6 clubs have been established, with NTD 53,000 for each club.

Collective bargaining

Coretronic has established operating procedures and arranged comprehensive channels for communication between labor and management, publicize organizational policies and systems, welfare policies and various activities. Employees can also fully express their opinions through such procedures and channels, so that we can make timely responses and assistance. For full communication and effective problem-solving, we hold labor-management meetings regularly and set up the 8585 employee opinion box and hotline, in order to create a happy enterprise for employees.

Targets	The labor-management meetings will be regularly conducted in accordance with the "Labor Standards Act" and “Regulations for Implementing Labor-Management Meeting,” to protect the rights of employees, create a win-win situation for the labor-management system, establish a two-way labor-management communication channel, and create a good labor-management relation; the labor representatives are chosen by the employees to communicate and negotiate subjects regarding labor-management and the company’s business operations
Risk Assessment	In accordance with the laws and regulations, the labor-management meetings are conducted every quarter by each factory, respectively. The discussion subjects and meeting records will be retained for the competent authority’s review and ensure that the labor-management meetings are conducted as scheduled The meetings of the Welfare Committee are conducted on a regular basis, to ensure the implementation of employees’ welfare related affairs The subjects proposed by the employees via the employees’ comment channels will be transferred from the receiving unit to the responsible unit and communication with employees shall be conducted according to the contents of the subject matter
Approaches	The records of labor-management meeting are retained in accordance with the laws for the competent authority’s review and ensure that the labor-management issues are practically handled The records of the Welfare Committee meeting shall be announced annually, to ensure the welfare of the employees and fair use of resources The subjects proposed by the employees via the employees’ comment channels and the processing results will be reviewed and retained by the audit office of the Group, to ensure these subjects are reasonable and compliant to the regulations
Improvement Measures	With the application of diverse feedback channels and on the basis of labor-management meetings and welfare committee meetings as these two approaches can complement each other, to ensure the smooth communications and negotiations between the labor-management mechanism and the employees’ rights and benefits will not be affected
Performance in 2022	Held labor-management meetings in each plant every quarter. In 2022, a total of 16 labor-management meetings were held, and the meeting minutes were announced on the internal website to ensure open communications.

Human Rights Education and Training

A course on the human rights policy and the relevant aspects was designed and set as the required course for indirect employees. In 2022, a total of 1,728 persons completed the "Human Rights Policy Course" and signed the "Coretronic Human Rights Principle".

Internal Communication Channels for Employees

Coretronic have established 8585 Hotline (+886-37-777000 ext. 8585) and Mailbox (8585@coretronic.com), Physical Suggestion Box, Employee Assistance Program(EAP), EIP Employee Website, Employee Forum, Welfare Committee, Website Quarterly Labor-management Meeting, and Employee Welfare Committee Meeting.
Coretronic have established a reporting email (8215@coretronic.com) and an enquiry and grievance hotline (+886-37-777000 ext. 8215) in accordance with the “Professional Ethics Violation of Stakeholders and Employees Enquiry and Grievance Channels.”
All complaint cases will be transferred from the receiving unit to the responsible unit and communication with employees shall be conducted according to the content of the subject matter.
The issue and processing results of each complaint case will be reviewed and retained by the audit office of the Group, to ensure that these issues are reasonable and compliant with the regulations.