Supplier/Vendor Management Policy
Taisun formulates Supplier/Vendor Management Policy, requires suppliers and vendors to follow relevant regulations on ESG (Environmental, Social and Governance, and works together to improve corporate social responsibility management procedures.
In order to ensure that suppliers and vendors understand the requirements of corporate social responsibility and ethics standards, and gradually improve their social responsibility and ethics performance, this policy is specially formulated.
(1)The Purchasing Department (hereinafter referred to PCD) should select suppliers and vendors based on their social responsibility and ethical performance, select suppliers and vendors with good performance, and eliminate poor performance suppliers, thereby encouraging all suppliers and vendors to take measures to improve their social responsibility and ethical performance.
(2)PCD sets up suppliers and vendors files and maintains evidence and records of suppliers and vendors evaluation results and improvement measures.
(3)All suppliers and vendors should sign the “Letter of Compliance with Corporate Social Responsibility Requirement for Suppliers and Subcontractors of Taisun Group” before receiving an order or contract, promise to abide by local labor laws, social responsibility and ethics standards, and accept on-site audits required by the company.
(4)PCD shall arrange the suppliers and vendors on-site audit at least once every year to evaluate the supplier’s or vendor’s performance in terms of social responsibility and ethics, and follow up on improvement measures.
(5)If a supplier or vendor is found to deliberately use child labor, forced labor, or other serious violations of labor laws and regulations, the cooperative relationship should be stopped immediately.
(6)The company should also understand the business relationship between the supplier and its sub-suppliers to prevent their sub-suppliers from seriously violating the SA8000
standard, such as the use of child labor, prison labor, and other forced labor.
(7)If a supplier or vendor is found to have dishonesty, infringe on the intellectual property rights of others, bribes to customers and other inappropriate benefits, such as kickbacks, gifts, etc., the company’s business activities and financial status shall be disclosed, and there shall be no false reports or deceptions. Occurs, otherwise the partnership will be immediately terminated.
(8)It is strictly forbidden on convenience of the position to seek profit, obtain property, etc. As for the obligation of bribery, confidentiality of business information and other criminal liabilities, it will be dealt with in accordance with the relevant laws of the country.
Green procurement policy
(1)Taking sustainable development goal of the company, comprehensively consider the energy-saving and environmental protection factors of product design, procurement, production, packaging, logistics, sales, service, recycling and reuse, and work with upstream and downstream enterprises to practice environmental protection, energy saving and reduction. Equalize social responsibilities and create a green supply chain.
(2)Through the implementation of green procurement, we can effectively prevent environmental pollution and waste of resources, improve the corporate social image and reputation as a whole, and enhance employees' sense of social responsibility for environmental protection.
(1)Implement the selection of environmentally friendly raw materials, and jointly focus on green concepts
A. Suppliers and vendors of raw materials using HSF material.
B. Strengthen the environmental management of suppliers and vendors to reduce the environmental load of the company's final products.
C. Develop eco-friendly products and related environmental protection facilities with suppliers and vendors.
(2)Suppliers and vendors Management
A. Adopt regular and irregular supplier and vendor green partner evaluation, and cooperate with the company's green procurement policy to ensure that supplier materials comply with relevant environmental substance regulations.
B. Promote the company's green concept to suppliers and vendors, so as to link all suppliers and vendors to construct a hazardous-free environmental management system to produce more environmentally friendly products.
(3)Optimal transportation schedule to reduce carbon emissions Prioritize local procurement and centralize orders to reduce shipments and distances to reduce carbon emissions.
Conflict minerals procurement policy
1. Do not support or use metals from armed conflicts or illegal mining, so-called "conflict minerals."
2. Suppliers and vendors of the company should investigate the metals contained in their products, such as gold, tantalum, tin, and tungsten, and confirm the source of these metals.
Investigating conflict minerals management procedures
Suppliers and vendors of the Company guarantees that all of the parts comply with the “Conflict Minerals Policy” which prohibits to use the mines from Congo or neighboring countries, that the mines derived from the conflict metal are prohibited in the product also.
Applicable to the composition investigation of all raw materials of the company.
(1)The mining of rare metals such as cassiterite, wolframite, coltan, iron ore and gold in the Congo (DRC) and surrounding countries and regions has caused serious human rights and environmental problems. Most of the mining activities in these areas are related to (funded) armed organizations in conflict, which has caused long-term instability in the area, so they are called "conflict minerals."
(2)The neighboring country defined is internationally recognized as a country that shares borders with DRC. The Conflict-Free Smelter Evaluation Project also lists Kenya as a neighboring country.
(3)Conflict-free metals in the DRC refer to products that do not contain conflicts with minerals and do not directly or indirectly provide funding for the armed forces of the Democratic Republic of the Congo or neighboring countries.
(4)The conflict minerals policy refers to the non-support and non-use of metals mined from armed conflicts, illegal mining and poor working environments, so-called “conflict minerals”. Suppliers should investigate metals such as gold (Au), tantalum (Ta), tin (Sn) and tungsten (W) in their products and confirm the source of these metals.
(1)According to the needs of the actual product, the relevant requirements such as the specifications of the required materials are passed to PCD, and PCD is required to find a suitable suppliers and vendors to send samples for approval. The risk assessment information on whether this material contains conflict minerals is disclosed to QA.
(2)PCD According to the material specifications and quality requirements, suitable suppliers and vendors are selected, and the suppliers and vendors are required to send samples to confirm and submit the "Material Composition Table" or "MSDS Table", and at the same time, the "Non-Use Conflict Minerals Guarantee" that the Engineering Department requires to sign 》 Transfer to the supplier and vendor to conduct an information survey of conflict minerals on the sampled materials and make a commitment to the materials. And send the "Not Use Conflict Minerals Guarantee" signed by the supplier and vendor and the survey results to determine whether the materials meet the requirements of the DRC for conflict-free metals.
(3)According to the disclosed materials containing conflict minerals risk information, the "Conflict-Free Metal Report Template" questionnaire was issued to PCD, and PCD follow-up was required to complete the investigation within the specified time and send the investigation results back to the company.
(4)The judgment whether the material meets the conflict-free metal requirements of the DRC based on the information provided by the supplier and vendor on the "Conflict-Free Metal Report" questionnaire.
(5)If the result of the investigation meets the requirements for conflict-free metals in DRC, this information will be passed on to PCD.
(6)If the result of the investigation is that DRC and surrounding conflict minerals are used in the materials, the supplier and vendor is required to provide a written analysis and immediately stop purchasing and using DRC and surrounding conflict minerals, and select a new one. The source of the minerals and provide valid evidence to prove that the new minerals meet the conflict-free metal requirements of DRC and formulate corresponding improvement and preventive measures to meet the conflict-free metal requirements of DRC; at the same time, the supplier and vendor is also required to sign
the "No Use of Conflict Mineral Guarantee."
(7)According to the disclosed materials containing conflict minerals risk information, the "Conflict-Free Metal Report Template" questionnaire was issued to PCD, and PCD follow-up was required to complete the investigation within the specified time and send the investigation results back to the company.
Evaluation of supplier and vendor
Domestic and foreign supplier and vendor evaluation procedure
1. PCD collects the manufacturers who are capable of producing the raw materials and components of the company, and transfers to QA after the initial approval department, and the head of QA signs the qualification evaluation method before transferring it to PCD.
2. Qualification evaluation means that for suppliers and vendors who have passed the domestic or international quality system certification, PCD will request a copy of the certified qualification from the manufacturer as the basis for the qualification evaluation and can be directly logged in.
3. Sample refers to the important materials that PCD informs the manufacturer to send samples, and the samples sent by the manufacturer are transferred by PCD to QA for sample inspection and determination. If the sample fails to pass the inspection, PCD will notify the manufacturer of the inspection result to send the sample again for inspection. If the sample is still unqualified, the qualification will be disqualified.
4. On-site appraisal is the supplier and vendor of important material production and outsourcing processing plants. PCD convenes quality control, R&D to conduct on-site understanding and evaluation based on the appraised items.
5. Examine evaluation means that the supplier and vendor must be examined and evaluated before deciding whether to disqualify.
6. Qualified approval means that when the supplier’s and vendor’s evaluation results reach the standard, PCD shall submit the survey and evaluation data to the general manager for approval.
7. After approved suppliers and vendors, PCD should register them in the "Qualified Supplier and Vendor List", issue them quarterly, and copy one copy to QA as a basis for future purchases and selection of suppliers and vendors.
Supplier and vendors audit
1. The evaluation items are quality and delivery date.
2. Assessment basis
(1)QA receives the inspection results from the quality control class every month, counts the quality scores, and submits them to PCD after review.
(2)The delivery date shall be summarized by PCD based on the delivery records and statistical delivery date.
(3)The total assessment results are filled out by PCD every month and approved by the head. If the assessment results do not meet the standard, PCD will notify the deadline for improvement. If there is no improvement, the supplier qualification will be reviewed.
1. PCD actively coordinates and selects the appropriate time once a year (only for the regular evaluation of suppliers of domestic important materials), and PCD and QA implement the evaluation. In addition to reviewing the improvement of the shortcomings of the previous evaluation, Coordinating with the manufacturer for important issues and suggesting improvement methods to request improvement. If there are major deficiencies or the performance shortcomings have not been improved, they may be required to improve within a time limit. If there is still no improvement, they can be reported to the PCD director for approval and disqualification.
2. For suppliers and vendors that have passed domestic or international quality system certification, they must confirm whether their certification is still within the validity period. If it is still within the validity period, PCD shall confirm. If it is overdue, it shall be required to submit a valid certificate, otherwise its qualification shall be cancelled.