Taishin FHC Corporate Social Responsibility Report 2019

103 Green Operation Supplier Risk Assessment Supplier Evaluation 1.Human Rights Policy Taishin has included "Supplier Commitment Statement" a s part of the contract, which is to be signed whenever a contract is renewed or newly established. The statement outlines suppliers' commitment to issues such as corporate social responsibility, sustainable environment and protection of basic human rights. 100% of new suppliers added in 2018 had signed the Supplier Commitment Statement. As of March 2019, 100% of Taishin's suppliers have signed their commitment to sustainability, a goal that was initially planned to be accomplished by 2020. To under- stand the efforts made by suppliers on related issues, Taishin developed a questionnaire to survey major suppliers on this topic in 2018. We also held our first supplier conference in October 2019 to address human rights and environmental protection. We have also stepped up publicity on these issues and have built up a model of diversified communication and experience exchange so that we can serve our suppliers as an indispensable and important partner for sustainable development and work togeth- er for a sustainable future. 2.Supplier's Commitments Norms Supplier Management Regulations Supplier Satisfaction Survey Risk Assessment Improvement Supplier Maintenance & Management Regulations Supplier Commitment Statement Selection principles: ● Localization ● Labor assessment ● Impact assessment ● Moral standards ● Riskmanagement… ● SupplierManagement Regulations ● SupplierMaintenance& ManagementRegulations ● SupplierCommitment Statement ● Supplierself-assessmentquestionnaire ● Supplierevaluation ● Samplereviewofsupplier self-assessmentquestionnaire ● Impromentsby evaluationresults ● Training&education ● Assessedonamonthly basis ● Corporate ethics and integrity ● Riskmanagement ● Labor and human rights ● Publicwelfare and environmental protection ● Continual implementation ● Scope of Application Eligible suppliers have tomeet one of the following criteria: ● Certified for ISOor other quality assurance systems of equivalent nature; ● Is legally registered; ● Having developed sound reputation in the business, is highlywilling to accommodate the Bank's needs, and delivers good service quality; ● Is the designated supplier, given the specifications of the procurement involved; ● Having produced a sample that passed requirements; ● Having passed an on-site inspection. To control human rights supervision and improve supplier management, Taishin has designed a supplier human rights risk questionnaire based on Universal Declaration of Human Rights, UN Guiding Principles on Business and Human Rights, UN Global Compact, ISO 26000, International Labour Organization, Social Accountability 8000, Code of Conduct of Responsible Business Alliance (RBA), and ISO 27001-Information Security System requirements pertaining to financial industries to serve this purpose. To implement sustainable supplier management, Taishin follows our "Supplier Maintenance & Management Guidelines" to categorize and rate suppliers based on the content and amount of purchase each year. The self-assessment questionnaire for suppliers was expanded from the Tier 1 major suppliers to the Tier 2 major suppliers in 2019. After recovering the questionnaires, the Company then performs supplier assessment and requests improvement from suppliers based on the outcome of assessment to ensure risk reduction and effective control. Suppliers with rating of C will be instructed to make improvements, and suppliers with rating of D will have purchase orders suspended until improvements are made and their rating changed back to C.