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LITE-ON Technology Corporation
Human Rights Policy
LITEON respects and supports internationally recognized human rights principles and standards,
including the Universal Declaration of Human Rights, the UN Global Compact, and the
International Labor Organization's Declaration of Fundamental Principles and Rights at Work.
LITEON complies with local laws and regulations where the company is located, and has devised
the LITEON human rights policy according to the UN Guiding Principles on Business and Human
Rights.
Scope of Application
LITEON human rights policy is applicable to LITEON and its affiliated companies.
LITEON is committed to respecting, protecting, and remediating employees, suppliers, and partners, who may be subjected to human rights violation. In addition, LITEON expects its suppliers and contractors to act in accordance to the spirit and basic principles of this policy.
Commitments of Human Rights
LITEON firmly believes respecting and upholding human rights is the foundational to the sustainable development and operation of a corporation.
LITEON takes into account human rights issues in every link of its operational value chain.
LITEON provides open and accessible communication channels for stakeholders.
Principles of Management
LITEON builds up policies and regulations and executes the internal audit regularly and adopts the Code of Conduct of RBA (Responsible Business Alliance) as management framework.
According to the RBA audit process, internal and external audits are performed regularly. The human right issues to which LITEON attaches great importantance are the following:
Prohibiting any form of discrimination
Prohibiting child labor, forced labor, and human trafficking
Providing fair and reasonable pay and working conditions
Providing a safe, hygienic and healthy work environment
Respecting employees freedom of assembly and association
RBA Compliance
LITEON has established its own RBA Code of Conduct audit procedures to ensure the adequacy, effectiveness and appropriateness of its CSR framework, and to monitor how progress complies with prescribed guidelines, goals and regulations. The audit procedures clearly outline the responsibilities, processes, principles and cycles of each audit, as well as what details are expected in an audit report and how audit findings should be followed up.
The RBA Code of Conduct covers a broad range of issues from employees' health and safety, environmental protection, to business ethics. The company follows these guidelines to conduct self-inspections at each of its plants every month, while plants located in Guangzhou, Dongguan and eastern China have all assembled RBA Code of Conduct committees to cross-audit each other and ensure 100% compliance. Any conduct that does not comply with the RBA Code of conduct is raised for discussion and improved upon within the given timeframe.
Due Diligence on Human Rights
A process of building internal and external awareness and understanding of where our activities may have the potential to intersect with human right was build; three due diligence steps were outlined as evaluation framework, assessment and improvement for LITEON to identify, prevent, and mitigate impacts related to human rights.
The RBA Evaluation Framework
To identify, prevent, and mitigate human rights impacts from LITEON and its supply chain, two frameworks of risk evaluation were launched for both employees and suppliers in terms of RBA. For employees, LITEON conducted regularly the risk evaluation for each production site based on two risk matrix of the occurrence (O) and severity (S) that can be quantified. Regarding the suppliers, a survey and audit form in the field of human rights was established based on RBA to understanding of what significant risk may cause from supply chain.
Assessment
Operation
There are two approaches to assess human rights risk of employees, including self-assessment and third party audit.
Supply Chain
LITEON has implemented the "Supplier Executive Certification of Compliance" and “Supplier Code of Conduct” by referring the Responsible Business Alliance (RBA) Code of Conduct, United Nations Guiding Principles on Business and Human Rights, the International Labour Organization's Declaration on Fundamental Principles and Rights at Work, and the Universal Declaration of Human Rights and asked suppliers to sign the written management undertaking guaranteeing that they would strictly comply and take social responsibilities. We also stipulated the RBA audit regulations for suppliers. The essential elements of evaluation include: no child labor, protection of human rights, no discrimination, equality of treatment, legal working hours and pay, and environment management.
Improvement
All LITEON plants are equipped with CSR project teams that follow the RBA audit program and perform regular internal and external audits. To ensure LITEON fulfills its corporate social responsibility, the teams are also responsible for reviewing the plants' performance in terms of the indicators, including employees, ethics, environment, and health and safety, and improvements in these areas.
By integrating the finding of human rights assessment into relevant functions and processes, LITEON implemented the improvement for taking appropriate actions to mitigate human rights risk. This step allows LITEON to tracking the effectiveness of the response and communicating on actions to address impacts associated with human rights. Mitigation and remedial measures for human rights risk are as follows. For details of the improvement measures, please refer to the relevant sections of the 2020 CSR Report.
➤ For the comprehensive disclosure of our human rights risks management, please refer to LITE-ON Technology Corporation Human Rights Due Diligence Report.
Sustainable Governance▸