嘉合丰电子

台湾丰艺电子全资子公司

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Supplier code of conduct

一、 Purposes

The Company has established this Supplier Code of Conduct (“Code”) to let the Company’s suppliers to have a full comprehension of and to abide by our ethical and product safety requirements in order to improve our responsibility towards the society and the environment, and for the sake of pursuing a sustainable development of the our business and working with our suppliers to achieve the target in a mutually beneficial manner.

二、 Scope

1. Human rights of workers
1.1 Suppliers shall operate in full compliance with the laws, rules and regulations of the countries in which they operate. This shall include working condition, compensation and benefits outlined in the employment contract as well as meeting the requirements of employee safety, health and hygiene.
1.2 Suppliers shall provide decent workplaces, ensure freely chosen employment of their workers and that they are treated with respect and dignity. There shall be on use of coercion or threat. Suppliers shall remain open and respectful of the freedom of association of its employees, upon which the employees have right to form or join unions or organizations.
1.3 Suppliers shall under no circumstances engage any child labor under the minimal age for employment in the country, neither shall suppliers engage in any use of illegal foreign labors.
1.4 Suppliers shall be committed to a workforce free of any employment or occupational discrimination:Companies shall not engage in discrimination based on gender, race, religion, nationality, age, marital status, sexual orientation, union membership and political affiliation. Workers shall be provided with equal treatments.
1.5 Suppliers shall establish rules or regulations to ensure the equality and dignity between different genders and to prevent sexual harassment at workplace.

2. Health and safety
2.1 Suppliers shall provide a safe and healthy work environment and establish labor safety and health management systems. Suppliers shall also implement ongoing worker education in occupational safety and industrial hygiene. Suppliers shall also care that the employees apply the training onto their daily work for occupational hazard prevention.
2.2 Suppliers shall provide that new employees receive required training on occupational safety and industrial hygiene. Regular training courses shall be arranged to enhance employees’ awareness in occupation safety and health.
2.3 Workers are to be provided with ready access to clean toilet facilities, potable water and sanitary food preparation, storage, and eating facilities. Worker dormitories provided with appropriate emergency egress, hot water for bathing and showering, adequate lighting heat and ventilation, and reasonable personal space along with convenient access.

3. Environmental protection
3.1 All required environmental permits (e.g. emission monitoring), approvals and registrations are to be obtained, maintained and kept current and their operational and reporting requirements are to be followed.
3.2 Depletion of resources and generation of wastes are to be minimized or eliminated at the source or by practices such as reduced use of natural resources, re-cycling and reuse of materials, which includes water and energy resources.
3.3 Chemicals and other substances posing a hazard to humans or the environment are to be identified, labelled and managed to ensure their safe handling, transportation, storage, use, recycling or reuse and disposal.
3.4 Suppliers shall implement a systematic approach to identify, manage, reduce, and responsibly dispose of or recycle solid wastes.
3.5 Air emissions of volatile organic chemicals, aerosols, corrosives, particulates, ozone depleting chemicals and combustion by-products generated from operations are to be classified, routinely monitored, controlled and treated as required prior to discharge.
3.6 Suppliers are to adhere to all applicable laws, regulations and customer requirements regarding prohibition or restriction of specific substances in products and manufacturing (including the labels for recycling and disposal).
3.7 Suppliers shall prevent illegal emissions or spills from entering storm drains.
3.8 Suppliers are to look for cost-effective measures to improve energy efficiency and to minimize their energy consumption and greenhouse gas emissions.

4.Ethics
4.1 Suppliers shall prohibit its employees and their family member from accepting improper advantages in any form.
4.2 Suppliers shall commit to abide by all laws and regulations of intellectual property right.
4.3 Suppliers shall be committed to the standards of fair trade shall not compete in the market by way of illegal means such as false advertising.
4.4 Suppliers shall implement appropriate means to safeguard customer’s business or technical information. Disclosure of the information to any subcontractor is strictly prohibited.
4.5 Suppliers shall have the policy to reasonably assure that the tantalum, tin, tungsten and gold in the products they manufacture does not directly or indirectly provide financial aid or benefit for the armed groups that the perpetrators of serious human rights abuses in the Democratic Republic of the Congo or any of its adjoining countries.

三、 Environmental protection

Suppliers shall read the Code Carefully and ensures full compliance with the Code. In an event of violation , the Company has the rights to terminate the business relation with the supplier and pursue compensation for damages and losses.

Judgment and processing of the final evaluation grades

Rating

Total

Description of Verdict

Reward/Punishment Suggestions

A

Above 90

Priority trading partners for regular purchases

Increases purchase percentage

B70 ~ 89

Qualified supplier

Interacts as normal

C61 ~ 69

Can be listed as qualified, but regular counseling is required. Performs supplier risk assessments when necessary and puts forward improvement measures as see fit

Reduces the order quantity depending on the situation and strengthens coordination and communication to improve the quality of its supply

D

Below 60

Cancelation of qualified supplier status

Terminates trading