Sustainable Supplier Management
Suppliers are our essential partners toward sustainability. Taishin FHC views supply chain management a critical step for enhancing competitiveness, which is why we continue to commit resources into sustainable supplier chain management. By attracting sustainable business partners, we aim to build a resilient supply chain and contribute to a brighter future.
Supplier Management Policies
Management Policies
Taishin cooperates with over 400 suppliers every year on projects including software and hardware procurement and building decoration. Besides cost and quality considerations, suppliers' ESG performance are also an important point of consideration for selection. To strengthen management capabilities, Taishin FHC is taking a systematic approach and has formulated "Supplier Management Regulations" which include mechanisms such as all qualified suppliers must sign the " Supplier Commitment Statement ", and evaluate suppliers through monthly supplier satisfaction surveys,supplier self-assessment questionnaire, and deliver the knowledge of sustainable development through the supplier conference to jointly enhance the sustainable competitiveness.
Human Rights Policy and Supplier's Commitments
In order to master the human rights risks of suppliers, Taishin has integrated the United Nations Universal Declaration of Human Rights, the United Nations Guiding Principles on Business and Human Rights, the UN Global Compact, ISO 26000, and the International Labor Organization. , social responsibility standards (Social Accountability 8000) and the spirit of the Code of Conduct - Responsible Business Alliance (RBA) and international norms such as information security systems (ISO 27001) are included in the management requirements.
Supplier Risk Assessment
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Norms
- Supplier Management Regulations
- Supplier Maintenance & Management Regulations
- Supplier Commitment Statement
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Supplier Satisfaction Survey
- Assessed on a monthly basis
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Risk Assessment
- Supplier self-assess ment questionnaire
- Supplier evaluation
- Sample review of supplier self-assessment questionnaire
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Improvement
- Improvements by evaluation results
- Training & education
Results of supplier human rights risk assessment
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Priority purchase(%)
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Second priority purchase(%)
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Purchases can be made, provided that improvements are made(%)
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No purchase will be made until the supplier improves to Grade C(%)
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2022
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40.5
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59.5
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0
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0
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2021
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50
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49
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1
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0
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2020
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58.5
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40.8
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0.7
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0
Suppliers Human Rights Risk Assessment and Education Training
We implemented human rights risk assessment on all 258 suppliers in 2022 and 100% education and training for all suppliers. We confirmed the risk of suppliers by responding to past disputes and violations of laws and regulations through risk questionnaires. According to the results of the survey, approximately 5.8% of the suppliers are high-risk suppliers (none of major suppliers); for suppliers with high risks, we shall conduct phone interviews and onsite visits based on the mitigation measures for addressing human rights issues of suppliers. We shall also regularly follow up on the improvement status and assess restrictions for future tenders. At the same time, we will continue to conduct trainings through supplier conference will establish more diverse ways on sharing and communication, actively promote Taishin's advocacy on human rights issues and expect to drive suppliers to work with us for better improvement.
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Number of suppliers
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298
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226
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258
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High risk
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10.3%
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3%
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5.8%
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Major Risk incident
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- Failure to appoint indigenous peoples or people with disabilities
- Failure to compile related data on disabling injuries
- Failure to implement education and training to protect employee privacy
Human rights risk mitigation measures
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Higher than 80 points
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Qualified supplier
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Priority purchase
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None
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None
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60-80 points
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High-risk suppliers: Purchases can be made
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Adjustments must be made in accordance with the Company's requirements
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Telephone communication
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Rigorous oversight
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Lower than 60 points
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High-risk suppliers: No purchases will be made
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First questionnaire response: One warning
Not the first questionnaire response: No purchase will be made until the supplier's score in the following year increases to at least 60 points or until the supplier formulates its human rights policy again and submits it to the Company
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Telephone communication
- Site survey
- Mandatory participation in the training in the supplier conference of the current year
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Rigorous oversight
