Foxconn Industrial Internet Co., Ltd. Corporate Social Responsibility (CSR) Code of Conduct Policy
1. STATEMENT
Foxconn Industrial Internet Co., Ltd. (hereinafter also called “the company” or “Fii”) recognizes and committed to Corporate Social Responsibility (CSR) and Environment, Social, Governance (ESG), for Fii Global of factory and employees to abide by regulate the company's business behavior by purpose of this code of conduct policy. Fii CoC policy (hereinafter also called” Fii’s CSR CoC) derived consolidate from of below requires:
(1) The member obligations of the industrial associations and the international standard institutes to which Fii’s business.
(2) The laws covering nations or regions where Fii deploys.
(3) The internal leadership of Foxconn who determine voluntary up grading of performance standards, each source represents a different commitment level of Fii’s promised delivery to the diverse stakeholders, which include Fii’s employees, customers, suppliers, the community, investors, and non-governmental organizations.
Fii had hence committed to ensuring that our business is in all respects conducted in conformance with ethical, professional and legal standards. With the aim of becoming an CSR-compliant supply-chain partner with customers, Fii declares in its CoC policy to respect all industrial rules, applicable laws, human rights, environmental conservation, and safety of products and services in the countries and regions in which it operates, and to conduct its business activities in an honest and ethical manner. Simultaneously, Fii’s suppliers are required to either subscribe this CoC or adhere to their own code that meets or exceeds the standards set by these policies and practices.
2. PURPOSE
This CoC policy is to ensure that the company’s operation meet the standards of ethical activities and professional standards to help maintain the company’s assets, rights and brand reputation. Fii implements this CoC with high standards in order to continuously improve the trust of our stakeholders and our social image, and to become a strong competitor in the industry and CSR field.
3. RESPONSIBILITIES
This Code is to set up the standards which Fii will support and be guided by in the conduct of its business. It determines the responsibilities of the Fii CSR committee in substantiating the CoC principles. The board committees of Fii, as the highest guiding unit of the Code, shall supervise and urge the company to fulfill its corporate social responsibility, and review the implementation effect and continuous improvement at any time, so as to ensure the implementation of CSR policies. The company has set up Fii Corporate Social Responsibility Committee (hereinafter referred to as the “CSR Committee”) to take charge of CSR policies, systems and related management guidelines. The specific improvement plan of CSR shall be approved by the board of directors. In the case of accounting, internal accounting controls or auditing matters, subject to the supervision of the Audit Committee of the Board of Directors. The Fii Chairman with CSR committee President and all heads (general managers) of branch committee were the main sponsors of this CoC policy. The Fii CSR branch committee had responsible for introducing policies and monitoring compliance with corporate social responsibility policies, and give feedback to Fii CSR committee executive secretariat on the specific operation situation.
Fii continues to develop an internal validation audit mechanism to ensure conformance with and fulfillment of this CoC policy on the international scale to require related management who are most tied to the local conditions and constraints to build capabilities in both CSR training and auditing knowledge to promote the audit mechanism. Fii audits were carried out by using internal professional staff teams or by resorting to external third-party service institutes annually or quarterly. Audits cover the areas of labor, ethics, environment, health and safety, and CSR management systems, which are required under the RBA standard. Fii respects the rights and interests of stakeholders, identifies the company’s stakeholders, and sets up a CSR module on the company’s website. Through appropriate communication methods, understanding the reasonable expectations and needs of the stakeholders, and appropriately responds to stakeholders’ concerns.
4. SCOPE
This Corporate Social Responsibility Code of Conduct applies to all employees of Fii, including directly and indirectly hires employees. This CoC is applicable to every corporation, operating entity, and factory area defined by controlling companies and business operations in the global scope of Fii (the factory was defined as all production bases, holding companies or controlling companies of Fii) and all its subsidiaries Institutions.
5. CSR CoC STANDARD
The CoC policy is founded on the basis of Fii’s CSR philosophy and is composed of eight sections. I. Ethics, II. Labor and Human Right, III. Health and Safety, IV. Environment, V. Management System (the elements of an acceptable system to manage conformity to this Code), VI. Responsible Sourcing of Minerals, VII. Anti-Corruption, VIII. Anti-Trafficked & Forced Labor.
I. Ethics
To meet social responsibilities and to achieve sustainable development, Fii upholds the highest standards of ethics. Fii’s Ethic Codes includes:
(1) Business Integrity
The highest standards of integrity are to be upheld in all business interactions. Fii shall have a zero tolerance policy to prohibit any and all forms of bribery, corruption, extortion and embezzlement. Any and all forms of corruption, extortion and embezzlement are strictly prohibited, and result in immediate termination of services and legal action.
(2) Disclosure of Information
All business dealings should be transparently performed and accurately reflected on Participant’s business books and records. Information regarding participant labor, health and safety, environmental practices, business activities, structure, financial situation and performance is to be disclosed in accordance with applicable regulations and prevailing industry practices. Falsification of records or misrepresentations of conditions or practices in the supply chain are unacceptable.
(3) No Improper Advantage
Bribes or other means of obtaining undue or improper advantage are not to be promised, offered, authorized, given or accepted. This prohibition covers promising, offering, authorizing, giving or accepting anything of value, either directly or indirectly through a third party, in order to obtain or retain business, direct business to any person, or otherwise gain an improper advantage. Monitoring, record keeping and enforcement procedures shall be implemented to ensure compliance with anti-corruption laws.
(4) Avoidance of Conflicts of Interest
Avoid conflict of interest that could adversely influence their judgment, objectivity, or loyalty to the company in conducting business activities and assignments. Employee must avoid situations where their personal interests could inappropriately influence, or appear to influence, their business judgment. Try to avoid actual, potential or perceived conflicts of interest and implement procedures to ensure that conflicts of interest are managed appropriately.
(5) Anti-money Laundering
No tolerance of the implication of either Fii or its employees in any cases of money laundering deriving from unlawful or criminal activities. Money laundering is the process by which individuals or entities try to conceal illicit funds, such as the proceeds of crime, or otherwise make such funds look legitimate. Fii will do the best to conduct business only with customers and business partners who have legitimate business and are using legitimate funds. Fii shall also comply with all applicable laws and regulation regarding money laundering.
(6) Fair Business, Advertising and Competition
Standards of fair business, advertising and competition are to be upheld.
(7) Protection of Identity and Non-Retaliation
Programs that ensure the confidentiality, anonymity and protection of supplier and employee whistleblowers are to be maintained, unless prohibited by law. Anonymous complaints with clear and specific descriptions of person/time/place/event are to be accepted and protected. Foxconn should have a communicated process for their personnel to be able to raise any concerns without fear of retaliation.
(8) Intellectual Property
Intellectual property rights are to be respected; transfer of technology and know- how is to be done in a manner that protects intellectual property rights; and, customer and supplier information is to be safeguarded.
(9) Privacy
Fii is to commit to protecting the reasonable privacy expectations of personal information of everyone we do business with, including suppliers, customers, consumers and employees. Fii should be to comply with privacy and information security laws and regulatory requirements when personal information is collected, stored, processed, transmitted, and shared
(10) Community Engagement
Fii is committed to respecting the communities where we work. We strive to contribute positively to community development and minimize any potential disruptions. We design community initiatives with a focus on long-term sustainable to help foster social and economic development.
II. Labor and Human Right
Fii is committed to uphold the human rights of workers, and to treat them with dignity and respect as understood by the international community. This applies to all workers including temporary, migrant, student, contract, direct employees, and any other type of worker.
The recognized standards such as the Universal Declaration of Human Rights (UDHR), the International Labor Organization (ILO) and the Ethical Trading Initiative (ETI) have been used as references in preparing this Code. Labor and Human Rights Codes of Fii include:
(1) Freely Chosen Employment
Forced, bonded (including debt bondage) or indentured labor, involuntary or exploitative prison labor, slavery or trafficking of persons shall not be used. This includes transporting, harboring, recruiting, transferring or receiving persons by means of threat, force, coercion, abduction or fraud for labor or services. There shall be no unreasonable restrictions on workers’ freedom of movement in the facility in addition to unreasonable restrictions on entering or exiting company-provided facilities, including, if applicable, worker’s dormitories or living quarters. As part of the hiring process, workers must be provided with a written employment agreement in their native language that contains a description of terms and conditions of employment. Foreign migrant workers must receive the employment agreement prior to the worker departing from his or her country of origin and there shall be no substitution or change(s) allowed in the employment agreement upon arrival in the receiving country unless these changes are made to meet local law and provide equal or better terms. All work must be voluntary and workers shall be free to leave work at any time or terminate their employment without penalty if reasonable notice is given as per worker’s contract. Employers and agents may not hold or otherwise destroy, conceal, confiscate or deny access by employees to their identity or immigration documents, such as government-issued identification, passports or work permits, unless such holdings are required by law. Workers shall not be required to pay employers’ or agents’ recruitment fees or other related fees for their employment. If any such fees are found to have been paid by workers, such fees shall be repaid to the worker.
(2) Child Labor Prohibition and Young Workers Protection
Child labor is not to be used in any stage of manufacturing. The term “child” refers to any person under the age of 15, or under the age for completing compulsory education, or under the minimum age for employment in the country, whichever is greatest. Fii shall implement an appropriate mechanism to verify the age of workers. If child labor is identified, assistance or remediation is provided. Workers under the age of 18 (Young Workers) shall not perform work that is likely to jeopardize their health or safety, including night shifts1 and overtime. Fii shall ensure proper management of student workers through proper maintenance of student records, rigorous due diligence of educational partners, and protection of students’ rights in accordance with applicable law and regulations. Fii shall provide appropriate support and training to all student workers. In the absence of local law, the wage rate for student workers, interns and apprentices shall be at least the same wage rate as other entry-level workers performing equal or similar tasks.
(3) Protection of Maternity Rights and Health of Female Workers
Fii had committed to protecting female workers’ rights and health. Health protection at work, maternity leave, social benefits, breast-feeding breaks, and protection against dismissal and discrimination based on maternity should be provided. It is unlawful to terminate the employment of a female worker during her pregnancy or absence on maternity leave. Female workers shall be entitled to have a period of maternity leave of no less than the legal requirement. A woman is guaranteed the right to return to the same or equivalent position paid at the same rate at the end of her maternity leave. Reasonable steps must also be taken to remove pregnant women/nursing mothers from working condition with high hazards, and the risk assessment must be formulated, including prenatal risk assessment and employee-specific job risk assessments after employees are notified of pregnancy. Remove or reduce the health and safety risks (including those associated with their work assignments) to pregnant women and nursing mothers in any workplace, and provide reasonable accommodations for nursing mothers.
(4) Diversity, Equal Opportunity and Anti- discrimination/ harassment
Fii forbids discrimination, harassment and retaliation and strives to provide equal opportunity and fair treatment to all employees, in order to ensure a safe, healthy and professional workplace with room for diversity. Companies shall not engage in discrimination or harassment based on race, color, age, gender, sexual orientation, gender identity and expression, ethnicity or national origin, disability, pregnancy, religion, political affiliation, union membership, covered veteran status, protected genetic information, marital status or other status protected by applicable law. Fii is committed to this principle in hiring and employment practices (such as wages, promotions, rewards, and access to training) of any employee. Workers shall be provided with reasonable accommodation for religious practices. In addition, workers or potential workers should not be subjected to medical tests, including pregnancy or virginity test, or physical exams that could be used in a discriminatory way.
(5) Humane Treatment
There were not treatment to be harsh and inhumane including violence, gender-violence, any sexual harassment, sexual abuse, corporal punishment, mental or physical coercion, bullying, public shame or verbal abuse of workers; nor is there to be the threat of any such treatment. Disciplinary policies and procedures in support of these requirements shall be clearly defined and communicated to workers.
(6) Wages and Benefits
Compensation paid to workers shall comply with all applicable wage laws, including those relating to minimum wages, overtime hours and legally mandated benefits. In compliance with local laws, workers shall be compensated for overtime at pay rates greater than regular hourly rates. Deductions from wages as a disciplinary measure shall not be permitted. For each pay period, workers shall be provided with a timely and understandable wage statement that includes sufficient information to verify accurate compensation for work performed. All use of temporary, dispatch and outsourced labor will be within the limits of the local law.
(7) Working Hours
Fii recognizes that unreasonable overtime for workers will result in reduced productivity, increased turnover, and increased injury and illness rates. Except in emergency under some unusual situations, a workweek shall be restricted to 60 hours including overtime. All overtime must be voluntary. Workers shall be allowed at least one day off for every six days worked as stipulated in the RBA. Based on that minimum requirement, Fii shall also comply with local laws in this regard and develop gap-closing and improvement plans on a continuous basis that are made known to the business group management. Fii shall also conduct review/discussion sessions with key stakeholders including employees, law enforcement agencies and relevant customers to ensure legal observance globally and locally. In addition, overtime shall be voluntary, and vacation, leave periods, and holidays shall be rendered consistently with applicable laws and regulations. Furthermore, the normal working hours and overtime hours of employees shall be recorded in a reliable and detailed way.
(8) Freedom of Association
In accordance with local law, Fii respects the rights of all workers to associate freely, join labor union, bargain collectively, and engage in peaceful assembly as well as respects the right of workers refrains from such activities. Workers shall be able to communicate openly with management regarding working conditions without fear of discrimination, harassment, intimidation, penalty, or reprisal. In conformance with local law, Fii respects the right of all workers to form and join labor unions of their own choosing, to bargain collectively and to engage in peaceful assembly as well as respect the right of workers to refrain from such activities. Workers and/or their representatives shall be able to openly communicate and share ideas and concerns with management regarding working conditions and management practices without fear of discrimination, reprisal, intimidation or harassment.
III. Health and Safety
Fii recognize that in addition to minimizing the incidence of work-related injury and illness, a safe and healthy work environment enhances the quality of products and services, consistency of production and worker retention and morale. Fii also recognize that ongoing worker input and education are essential to identifying and solving health and safety issues in the workplace.
Recognized management systems such as ISO 45001 and ILO Guidelines on Occupational Safety and Health were used as references in preparing the Code and may be a useful source of additional information. Policy on health and safety of Fii includes:
(1) Occupational Safety
Worker potential for exposure to safety hazards (e.g., chemical, electrical and other energy sources, fire, vehicles, and fall hazards) are to be identified and assessed and controlled, and mitigated using the Hierarchy of Controls, which includes eliminating the hazard, substituting processes or materials, controlling through proper design, engineering and administrative controls, preventative maintenance and safe work procedures (including lockout/tagout), and providing ongoing occupational health and safety training. Where hazards cannot be adequately controlled by these means, workers are to be provided with appropriate, well-maintained, personal protective equipment, and educational materials about risks to them associated with these hazards.
(2) Emergency Preparedness
Emergency drills must be executed at least annually or as required by local law, whichever is more stringent. Potential emergency situations and events are to be identified and assessed, and their impact minimized by implementing emergency plans and response procedures including: emergency reporting, employee notification and evacuation procedures, worker training and drills, appropriate fire detection and suppression equipment, clear and unobstructed egress adequate exit facilities, information for emergency responders and recovery plans. Such plans and procedures shall focus on minimizing harm to life, the environment and property.
(3) Infectious Disease Preparedness and Response
A program with reasonable steps shall be developed and implemented to prepare for, prevent, and respond to the potential for an infectious disease among all employees.
(4) Occupational Injury and Illness
Procedures and systems are to be in place to prevent, manage, track and report occupational injury and illness including provisions to: encourage worker reporting; classify and record injury and illness cases; provide necessary medical treatment; investigate cases and implement corrective actions to eliminate their causes; and facilitate return of workers to work.
(5) Industrial Hygiene
Worker exposure to chemical, biological and physical agents is to be identified, evaluated, and controlled according to the hierarchy of controls. If any potential hazards were identified, participant shall look for opportunities to eliminate and/or reduce the potential hazards. If elimination or reduction of the hazard is not feasible, potential hazards are to be eliminated or controlled through proper design, engineering and administrative controls. When hazards cannot be adequately controlled by such means, workers are to be provided with and use appropriate, well-maintained, personal protective equipment free of charge. Protective programs shall be ongoing and include educational materials about the risks associated with these hazards.
(6) Ergonomics
Worker exposure to physically demanding tasks, including manual material handling and heavy lifting, prolonged standing, and highly repetitive or forceful assembly tasks is to be identified, evaluated and controlled. The integration of human factors via reasonable evaluation is to increase staff efficiency and reduce work accidents.
(7) Machine Safeguarding
Production and other machinery shall be evaluated for safety hazards, and to minimize or eliminate the risk of mechanical injury. Physical guards, interlocks and barriers are to be provided and properly maintained where machinery presents an injury hazard to workers. Change management is required for both newly imported equipment and changed equipment, and the risk assessment of machinery safety need to be re-evaluated.
(8) Sanitation, Food, and Housing
Workers are to be provided with ready access to clean toilet facilities, potable water and sanitary food preparation, storage, and eating facilities. Worker dormitories are to be maintained to be clean and safe, and provided with appropriate emergency egress, hot water for bathing and showering, adequate lighting heat and ventilation, individually secured accommodations for storing personal and valuable items, and reasonable personal space along with reasonable entry and exit privileges.
(9) Health and Safety Communication
Fii provides workers with appropriate workplace health and safety information and training in the language of the worker or in a language the worker can understand for all identified workplace hazards that workers are exposed to, including but not limited to mechanical, electrical, chemical, fire, and physical hazards. Health and safety related information shall be clearly posted in the facility or placed in a location identifiable and accessible by workers. Training is provided to all workers prior to the beginning of work and regularly thereafter. Workers shall be encouraged to raise any health and safety concerns without retaliation.
IV. Environment
All activities of Fii shall be carried out with respect for the environment. Fii’s three main areas of environmental impact are products, campus sites, and ecology. The first two areas are accounted for in our following codes and implementation guidelines, whereas the third area is concerned with developing programs in accordance with the CoC policy on the environmental protection. Recognized management systems such as ISO 14001 and the Eco Management and Audit System (EMAS) have been used as references in preparing this Code and may be a useful source of additional information. Environmental standards of Fii include:
(1) Materials Restrictions
Fii had to adhere to all applicable laws, regulations and customer requirements regarding prohibition or restriction of specific substances in products and manufacturing, including labeling for recycling and disposal.
(2) Hazardous Substances
Chemicals, waste and other materials posing a hazard to humans or the environment are to be identified, labeled and managed to ensure their safe handling, movement, storage, use, recycling or reuse and disposal.
(3) Solid Waste
Fii shall implement a systematic approach to identify, manage, reduce, and responsibly dispose or recycle solid waste (non-hazardous).
(4) Air Emissions
Air emissions of volatile organic chemicals, aerosols, corrosives, particulates, ozone depleting chemicals and combustion by-products generated from operations are to be characterized, routinely monitored, controlled and treated as required prior to discharge. Ozone-depleting substances are to be effectively managed in accordance with the Montreal Protocol and applicable regulations. Fii shall conduct routine monitoring of the performance of its air emission control systems.
(5) Boundary Noise Management
Identify, control, monitor, and reduce noise generated by the facility that affects Boundary Noise levels.
(6) Environmental Permits and Reporting
All required environmental permits (e.g. discharge monitoring), approvals and registrations are to be obtained, maintained and kept current and their operational and reporting requirements are to be followed.
(7) Pollution Prevention and Resource Reduction
Emissions and discharges of pollutants and generation of waste are to be minimized or eliminated at the source or by practices such as adding pollution control equipment; modifying production, maintenance and facility processes; or by other means. The use of natural resources, including water, fossil fuels, minerals and virgin forest products, is to be conserved or by practices such as modifying production, maintenance and facility processes, materials substitution, re-use, conservation, recycling or other means.
(8) Water Management
Fii shall implement a water management program that documents, characterizes, and monitors water sources, use and discharge; seeks opportunities to conserve water; and controls channels of contamination. All wastewater is to be characterized, monitored, controlled, and treated as required prior to discharge or disposal. Fii shall conduct routine monitoring of the performance of its wastewater treatment and containment systems to ensure optimal performance and regulatory compliance.
(9) Energy Consumption and Greenhouse Gas Emissions
Fii is to establish a corporate-wide greenhouse gas reduction goal. Energy consumption and all relevant direct and indirect greenhouse gas emissions are to be tracked, documented, and publicly reported against the greenhouse gas reduction goal. Fii shall to look for cost-effective methods to improve energy efficiency and to minimize energy consumption and greenhouse gas emissions.
V. Management Systems
Fii has established management systems whose scopes are related to the content of this Code. The management systems shall be designed to ensure
(a) Compliance with applicable laws, regulations and customer requirements related to suppliers’ operations and products;
(b) Conformance with this Code; and
(c) Identification and mitigation of operational risks related to this Code. The management systems should also facilitate continual improvement.
Requirements on management systems of Fii include:
(1) Company Commitment
A corporate social and environmental responsibility policy statements affirming Fii’s commitment to compliance and continual improvement, endorsed by top management and posted in the facility on the local language.
(2) Management Accountability and Responsibility
Clearly identify company representatives responsible for ensuring implementation and periodic review of the status of the CSR management systems. Executives review the status of the management systems on a regular basis.
(3) Legal and Customer Requirements
A process to identify, monitor and understand applicable laws, regulations and customer requirements, including the requirements of this code.
(4) Risk Assessment and Risk Management
A process to identify the legal compliance, environmental, health and safety and labor practice and ethics risks associated with Foxconn’s operations. Determination with the relative significance for each risk and implementation the appropriate procedural and physical controls to management the identified risks and ensure regulatory compliance.
(5) Improvement Objectives
Written performance objectives, targets and implementation plans to improve the Fii’s social, health and safety, and environmental performance, including a periodic assessment of Fii’s performance in achieving those objectives.
(6) Training
The programs to training managers and workers for implement policies, procedures and improvement objectives and to meet applicable legal and regulatory requirements. Core curriculums such as orientation training and CSR CoC training should be arranged for new employees, and employees in service should take at least two hours of CoC training per year. Security personnel should receive formal training in human rights policies or specific procedures and their application to security.
(7) Communication
The clearly processes for communicating and accurate information of policy, performance, practices and expectations to workers, suppliers and customers.
(8) Worker Feedback, Participation and Grievance
Ongoing processes, including an effective grievance mechanism, to assess employees’ understanding of and obtain feedback on or violations against practices and conditions covered by this Code and to foster continuous improvement. Workers must be given a safe environment to provide grievance and feedback without fear of reprisal or retaliation.
(9) Audits and Assessments
Periodic self-evaluations to ensure conformity to legal and regulatory requirements, the content of the Code, and customer contractual requirements related to social and environmental responsibility.
(10) Corrective Action Processes
The procedure for timely correction of deficiencies identified with internal and external assessments, inspections, investigations and reviews.
(11) Documentation and Records
The documents of ensure regulatory compliance and conformity creation and maintenance with records for company requirements along with appropriate confidentiality to protect privacy.
(12) Supplier Responsibility
The procedure requirements of Code for communicate suppliers with monitoring the Code compliance.
VI. Responsible Sourcing of Minerals
Fii adheres to international standards and governmental and non-governmental regulations on conflict minerals. Fii did not accept, and did not use, conflict minerals in our operations. Fii requires suppliers to trace the origin of products potentially containing conflict minerals, including gold (Au), tantalum (Ta), tin (Sn), tungsten (W), Cobalt (Co), Mica or any other minerals notified by Fii to the supplier in the products they manufacture to reasonably assure that they are sourced in a way consistent with the Organization for Economic Co-operation and Development (OECD) Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas or an equivalent and recognized due diligence framework. In addition, Fii’s suppliers are required to fulfill their due diligence on conflict-free minerals pursuant to the relevant international standards and regulations.
VII. Anti-Corruption Policy
Fii upholds a corporate culture of dignity and integrity. Fii had committed to full compliance with local and international anti-corruption and anti-bribery laws and regulations. Corruption, bribery, embezzlement or improper activities are strictly prohibited. Fii has a zero-tolerance policy towards activities or behaviors that are in violation of the anti-corruption policy. We are prohibited from any conduct of bribery, corruption, extortion or embezzlement, or directly or indirectly providing, requesting, accepting or promising illegitimate interests from or to customers, suppliers, public officials and foreign officials. Prior to engaging in any activity that may lead to any concerns about corruption, employees shall report to his or her manager and confirm that there is no violation of the Code. We shall collectively avoid making any business decisions what would cause negative consequences to Fii’s reputation or create the appearance of impropriety.
All employees (including directly and indirectly hired employees) are inducted with at least two hours of compulsory anti-corruption training every year. In addition, all partnerships with suppliers, vendors and customers must strictly comply with the anti-corruption policy.
VIII. Anti-Trafficked & Forced Labor
Fii does not tolerate trafficking or any form of slavery, forced labor, debt repayment or prison labor. These include the use of threats, compulsion, coercion, abduction, fraud, or payment of compensation to anyone controlling another person to transport, hide, recruit, transfer, or receive personnel for the purpose of exploitation. In addition, Fii requires suppliers, manufacturers and customers to strictly implement the anti-trafficked and forced labor policy as a prerequisite for partners.
6. ENFORCEMENT OF THE CoC POLICY
The CoC policy approved by Fii Chairman with CSR committee President and all heads (general managers) of branch committees would be defined as an ethical commitment that includes basic principles and standards for the appropriate development of relations between Fii with its main stakeholders (employees, customers, shareholders, suppliers, the community, investors, and non-governmental organizations). The spirit and guidance embodied in the standards of business conduct policy must be followed by all our employees, in particular by our managers across our businesses to set an example for others to follow. The commitment and performance to compliance with this Code will be integrated into the performance appraisal system. Fii CSR branch committee director-general must provide annual assurance that the CoC policy is being adhered to within their business operations.
The corporate and business group management also needs to roll out the approved CoC policy to our employees. This should take place in a variety of ways, reflecting the different cultures and sizes of our businesses around the world. Employees’ rights, the Code requirements, and expectations documented in this CoC policy should be communicated to all staff through employees’ labor contracts, employees’ handbooks, and other channels which convey the need for effective and exact implementation of and adherence to this CoC policy.
Fii had been to perform auditing and design programs as validation instruments for ongoing training and awareness of candid execution of the CoC policy. The CSR programs to substantiate CSR policy should employ a comprehensive audit protocol, which is designed to assess performance at Fii’s international sites and yield a standardized scorecard system to establish a baseline for tracking improvements and making comparisons with peer companies.
Furthermore, it is considered that any deployed system should provide for complaints and suggestions from our ground operations, and therefore whistle-blowing mechanisms and grievance channels must be established in order to seek improvements. Improve communication channels, effectively communicate CSR policies, expected goals and performance to employees, suppliers and customers through the company website, internal system systems and announcements. By formally documenting and revising this CoC policy, Fii aims for continuous organizational improvement and innovative governance practices.
Along with the official publication of Code of Conduct for Corporate Social Responsibility of Fii, we would abide by improve sustainable development and environmental, social and corporate governance and continue to engagement with stakeholders.
The following are the public declarations and milestones of the Fii:
• Commitment to corporate citizenship of sustainable business for all stakeholders;
• Integration of economic bottom line with social and environmental performance to protect corporate reputation and public image;
• Transparency of information and disclosure to interest holders;
• Alignment of communication with industrial partners for best CSR practices, risk management, and media crisis handling;
• Incorporation of CSR principles into Fii’s culture and daily business operations;
• To continue CSR committee as Fii CSR strategic driver and tactical mechanism for CSR;
• To produce an annual GRI-compliant CSR reports and deliver Fii CSR value propositions and achievements;
• To enforce Fii CSR policy for international establishments across customer groups, business units and suppliers; and
• To conduct periodic self-audit programs and implement self-audit actions, make corrective action plans, and timely feedback to customers about our improvements; and to establish a standard mechanism for better interacting with customers.
7. REPORTING AND PROCEDURES
(1) Reporting
To discover, prevent and avoid any unethical behaviors and violations to this Code, Fii encourages all employees and any third party to collect relevant material and use the channel which is announced to report any violation, suspected violation or any conduct that could result in a violation of the Code.
(2) Procedures
Fii adopts a zero-tolerance policy to any violation of this Code. Fii will thoroughly investigate any good faith reports of violations, and any violation will be dealt with immediately. All employees are required to cooperate in internal investigations of misconduct and unethical behavior.
After investigation, individuals who are found to be in noncompliance with this Code, including those who act in a supervisory capacity but fail to report wrongdoing, shall correct such violation in accordance with Fii’s instructions. Fii may, according to employment contract, internal disciplinary policies and procedures, impose disciplinary actions on such violator.
(3) No Retaliation
Fii will not tolerate any kind of retaliation for reports or complaints regarding violation of the Code that were made in good faith. Open communication of issues and concerns by all Fii employees without fear of retribution or retaliation is vital to the successful implementation of this Code. Fii will keep confidential the identity of the person reporting violation of this Code, and protect him/her from any unfair retaliation or treatment.
1 Night shift: The night shift of young worker can be clearly regulated by local laws, but generally refers to a continuous period of at least 7 hours from 10 p.m. to 7 a.m. the next day.
Effective Date 2022 / 6 / 1
Version control table
| Version number | Issuer | Date |
| 1.0 | Fii CSR Committee | August 29, 2020 |
| 2.0 | Fii CSR Committee | June 1, 2022 |
