Human Rights Risks and Material Issues

Human Rights Risk Assessment

To address major human rights issues of stakeholder concern, Wistron initiates a thorough review of policies and internal regulations to ensure the comprehensiveness of management measures. Additionally, we set annual performance goals and regularly track progress of relevant work plans. Continuous adherence to the RBA framework guides daily operational audits, with responsible departments tasked to launch improvement plans for identified deficiencies to ensure that relevant human rights risks are effectively controlled and mitigated.

In 2023, Wistron continued its human rights risk assessments, analyzing RBA audit reports from 2021 to 2023. Among all identified deficiencies, approximately 2.02% were classified as medium or high risk, with labor-related issues comprising the majority at 80.96%. Key labor concerns, in order of importance, included "working hours," "protection of young workers," and "wages and benefits." A summary of related risk mitigation and remedial measures is shown in the table below. For details, please refer to Wistron Human Rights Due Diligence Management Report. The mitigation and remedial measures listed in the report were collected and communicated through the global ESG action information platform. After reaching consensus and resolution, they were shared and rolled out across all Wistron sites. Progress is regularly reported to ensure relevant management principles and standards are implemented faithfully.

Child Labor and Young Worker

Wistron's Human Rights Policy explicitly prohibits child labor. During the recruitment process of each operating location, the actual age of the employees will be checked to confirm that there is no employment of child labor. Wistron's certain operating locations hire employees who are over the minimum age for work in accordance with local laws but are under the age of 18 to fulfill production capacity requirements. To protect their physical safety and mental health, the Company arranges low-risk work suitable for their skill level and development, pays close attention to their work training, living service, and department management.

The number of young workers hired by Wistron in 2023

Forced Labor

Wistron's Human Rights Policy prohibits any form of forced labor, including human trafficking, coercion, slavery, and other forms of non-voluntary labor. Employees' contracts are established and signed in accordance with local regulations. Employees have the right to terminate the labor contracts and are not bound by any other arrangements that restrict the employment relationship between employees and Wistron such as withholding of deposits or identification certificates. No forced labor has occurred in any of Wistron's operating locations in 2023 through the implementation of various human rights management measures.

Freedom of Association

Wistron's Human Rights Policy respects the employees' freedom of association and we are committed to providing channels and environments suitable for the free expression of opinions. Employees can ask the union or the Employee Relationship Promotion Committee in global locations of operation to help express opinions in meetings and ensure that the opinions of general employees can be heard and responded by the Company. In 2023, the proportion of union employees at all Wistron sites around the world was 51.53%.

Non-Discrimination

Wistron's Human Rights Policy ensures that all personnel have equal work opportunities and prevents any form of discrimination or unequal treatment in the aspects of employment, salary, training, promotions, dismissals, and allocation of resources based on geography, race, ethnicity, background, social class, ancestry, religion, physical disability, gender, sexual orientation, gender identity and expression, pregnancy, marital status, union membership, political views, appearance, age, or relationship with union. Wistron measures performance based on the principles of competence and contribution to ensure equal rights and opportunities for all employees.

Wistron is committed to maintaining a diverse and safe workplace environment, and adopts the principle of "zero tolerance" for any form of discrimination and harassment to protect the fairness, respect and safety needs of all employees. To this end, Wistron has formulated the "Non-Discrimination and Anti-Harassment Policy" (hereinafter referred to as "this Policy") and has dedicated to eliminating and preventing any form of discrimination, and extends these efforts to external stakeholders, including customers, suppliers, and the general public. To ensure that all internal executives and employees are conscious of corporate sustainability issues, the Company requires new employees to complete the "Corporate Sustainability and Social Responsibility Policy (Including Human Rights Policy)" and "Corporate Sustainability Course (Basic)" trainings. The training programs include the issues, such as the fairness principle for interviews, sexual harassment, infringements of human rights, and discrimination. In 2023, the total training hours of the operations around the world was 18,304 hours and the trained employees accounted for 100% of all trainees. Related systems and regulations have been announced on the Company's internal website subject to employees' review at any time. With continuous awareness campaigns, there were no cases of discrimination in violation of the Company's policies and regulations at any of the business locations around the world in 2023.

Wistron has formulated the "Non-Discrimination and Anti-Harassment Policy"

Anti-Harassment

Wistron respects the freedom and rights of all employees. Therefore, open platforms for expressing opinions and whistleblowing and reporting channels for problems were generally established in all operations around the world. In this way, the needs and expectations of our employees on the issues, such as working conditions and working environment, can be fully grasped. Our employees can fully express their suggestions for the Company or ask questions in a confidential manner without fear of retaliation. For the sexual harassment issues, the Company not only formulates and promulgates the independent management measures and the incident handling procedures, but also sets up specific channels for reporting problems, such as exclusive whistleblowing and reporting hotlines and mailboxes, etc. Moreover, clear accountability norms are utilized to ensure the privacy and personal safety of whistleblowers.

In addition, the Company organizes lectures from time to time to invite experts to give speeches in order to achieve the goal of advocating and answering questions related to self-protection and rights protection of our colleagues. Medical rooms are also set up or doctors are regularly stationed to provide our employees with psychological counseling services. A harassment-free workplace is created through a variety of proactive and passive management practices with our continuous efforts.

Living Wage

In 2023, the Company issued "Wistron’s Commitment to Living Wage," affirming that the compensation and benefits provided not only comply with local laws and regulations but also exceed the legal minimum wage. The Company conducts regular salary surveys activities (completed: 14 Wistron locations, 390 first-tier/critical suppliers, and 14  contractors) The Company uses the Anker living wage methodology to establish Wistron’s living wage calculation formula and data, mainly referring to Cost of Living and MIT-Living Wage Calculator and other methodologies. The calculation items include expenses such as food, clothing, housing, transportation and education, and the data are regularly re-confirmed and updated. All the actions aim on actively encouraging the Company, suppliers, and contractors to meet living wage standards of various regions.

Work Environment for Persons with Disabilities

At the business locations around the world, Wistron complies with the local laws and regulations related to disabled persons protection and recruits people with disabilities who are employable to ensure that the work environments satisfy the special requirements for disabled persons with the ability to work. For example, the design of the barrier-free space in the office environment, the provision of dedicated parking spaces and welfare cars, and other considerate facilities are to facilitate persons with disabilities when they perform work tasks and participate in various activities.