A Promoter of People Values

Growth of Employee Size in the Last Three Years

Percentage of New Permanent Employees and Attrition Rate

Kaori had 149 new recruits in 2022 that represented 26.42% of the total workforce; 120 of the new recruits were male and 29 were female. 73 employees resigned during the year, representing an attrition rate of 12.94%; 52 or the resigned employees were male and 21 were female. By analyzing data on new recruits and resignees, the Company evaluates the appropriateness of its existing salaries and benefits and determines whether it has met its goal of creating a friendly workplace. For resignees, the Company surveys the cause of resignation and take their responses into consideration for future improvements. Employees' resignation requests are handled strictly in accordance with the Labor Standards Act; employees who wish to terminate their employment contract are required to serve advance notice of no more than 30 days depending on seniority, which complies with prevailing laws.

No. of New Permanent Employees

No. of Permanent Employees Resigned

Kaori values human rights and enforces labor policies and a proper work spirit in a fair and respectful manner. The Company is committed to creating a culture of fairness, inclusivity, and open communication as well as shaping a work environment that protects human rights; it goes to great lengths to incorporate relevant values into employees' work activities and corporate culture. In addition to complying with national laws, the Company protects workers out of respect for their human rights and observes international conventions regarding gender equality, prohibition against all forms of discrimination, forced labor, child labor, and avoidance of long work hours. We do not tolerate any form of harassment, discrimination, or any behaviors that are against employment laws. Kaori committed no human rights violations in 2022. The Company expects to introduce a human rights protection system and establish its own human rights policies in 2023.

Labor-Management Communication

Good labor-management communication helps the Company improve weaknesses and develop the solid foundation needed to raise competitiveness. The Company provides a broad diversity of communication channels that employees can use to express opinions. Kaori believes that effective communication and bilateral interaction between labor and management is a useful way of uniting employees.

Employees who have physical or mental disabilities are offered assistance from a variety of sources; meanwhile, efforts are made to learn and adjust their workload and to provide care, support, and assistance where possible.

Employees are able to express opinions through the Employee Welfare Committee, labor-management meetings, the grievance mailbox, and the grievance hotline. Kaori has the “Regulations for Implementing Labor-Management Meeting” in place to support a harmonious work environment. Labor-management meetings are held once every three months to facilitate communication and cooperation between labor and management for the benefit of both sides. The Company also ensures that all of the employees' opinions, suggestions, and feedback are handled by dedicated personnel. Meanwhile, systems have been implemented to protect employees from all forms of retaliation and threat. Although the Company has not established a union or signed a collective bargaining agreement, it convenes labor-management meetings on a regular basis. A total of four such meetings were convened in 2022, and each meeting had 20 participants. No complaints were raised internally but one misconduct report was raised externally during the year. Kaori handled the report according to relevant policies and will continue following up on subsequent progress while taking preventive measures.

Grievance Channels

Equal Employment Opportunities

The Company values workers' rights and assigns employees to suitable positions depending on their skill sets and competence. In terms of recruitment, salary, performance, promotion, training, and benefits, the Company does not discriminate by gender, religion, nationality, or ethnicity. In addition to prohibitions against child labor, Kaori adopts a fair recruitment principle that discourages all forms of unreasonable restriction (such as withholding ID cards/passports or collecting inappropriate gains). Furthermore, employment contracts are drafted in languages and texts that employees can easily understand.

Recruitment Channels

Kaori continued to recruit employees primarily using online platforms in 2022, and it empowered the heads of various recruiting departments to set up interviews with potential candidates as needed. Kaori also sourced talent through other channels such as employment service stations, campus recruitment programs, the Workforce Development Agency, and professional training institutions. Kaori currently engages Cheng-kung Senior Industrial Commercial Vocational School and Lunghwa University of Science and Technology in a series of industry-academia collaborations to bring fresh graduates into the professional field.

Compensation Distribution by Gender for 2022

Performance Evaluation

Employees undergo performance evaluation two times a year and are entitled to promotional opportunities and rewards according to the performance evaluation policy. The Company hopes to see every employee realize their full potential and have the best talent lead the teams in taking responsibility, making decisions, coordination, execution, and collaboration toward accomplishing corporate goals.

In 2022, 100% of Kaori employees underwent performance evaluation. Employees' annual performance evaluations are conducted by their respective line managers. The evaluation covers work performance, attendance, work attitude, and other work-related aspects. The Company also requires all managers to pay particular attention to the fairness of the performance evaluation and to avoid all forms of discrimination and unfair treatment whether due to gender, age, or other factors unrelated to work.

Number of Employees Receiving Regular Performance and Career Development Reviews in 2022

Diverse Benefits System

Kaori arranges Labor Insurance and National Health Insurance coverage for employees as required by laws and ensures that employees are paid the benefits they are entitled to. By promoting a harmonious labor-management relationship and catering to employees' wellbeing and health, the Company aims to help employees grow in life and at work. In 2022, Kaori paid birth and child care subsidies totaling NT$1.03 million. More than NT$610 thousand in children's scholarships was paid to a total of 223 beneficiaries.

Key Benefit Measures

Pension Plan

Employee Welfare Committee

0.15% of the operating revenue and 20% of the income from the sale of scrap are contributed to the benefits pool on a monthly basis. The Employee Welfare Committee continues to organize activities that aim to relieve stress and promote interactions between employees. Below are some of the key benefits arranged by the committee：

• Domestic and foreign group trips
• Childbirth, wedding, funeral, hospitalization, and military service subsidies
  • Childbirth subsidy：
  • Childcare subsidy：Applicable to children below the age of 6 that are registered in the same household as the Company's employee; paid at NT$10 thousand per child, per household, per year.
• Emergency relief
• Children's scholarships
• Festival bonuses
• Sports and recreational equipment
• Birthday celebrations: birthday cake, birthday cash
• Club activities: yoga, fitness boxing

Occupational Health and Safety Policy 

In accordance with the principle of sustainable operation, Kaori is committed to establishing and enhancing a safety culture, implementing self-management, and aiming to reduce occupational health and safety incidents. Here is the content of the "Occupational Health and Safety Policy" as follows：

With regards to risk assessment, the Company assesses plant premises regularly for potential risks, and it conducted a total of 5 special risk assessments in 2022：

Occupational Safety and Health Committee

Overview of Occupational Safety and Health Committee Meetings in 2022：

Professional Certification and Training

Promotion of Work Injury Prevention

The following measures have been taken to promote employees' awareness of work injury prevention:

• Unscheduled promotion during monthly meetings
• Occupational hazard awareness at plant sites
• Training for first-aid personnel
• Training for supervising personnel
• Training on hazard identification: employees are trained on the prevention of physical or mental abuse while performing duties.

Work Injury Statistics and Reporting

Kaori investigates each incident of occupational hazard according to its accident reporting, resolution, and investigation procedures (SH-P-00-0009). Findings have been reported in the 2022 In-plant Hazard Report (including Occupational Traffic Accidents). The report not only records the occurrence of occupational incidents, but also includes detailed analysis of statistical data. Meanwhile, occupational hazard data is reported on the Ministry of Labor's safety and health resume intelligent cloud website on a yearly basis. A total of seven occupational injuries were reported for permanent employees and no cases were reported for contract workers in 2022. As for the types of injury suffered, two were from falling objects, one was from crushing, one was from cutting, one was from accidental kicking, and two were commuting accidents. The Company will continue promoting awareness and enhance safety training and audits to prevent accidents.

Occupational Injuries for the Year

Employee Health Checkups

Kaori has long been committed to “protecting the safety, health, and welfare of workers and stakeholders, preventing occupational hazards, and promoting employees' physical and mental health”, and has implemented policies that are more stringent than what the laws require. The Company organizes employee health checkups once a year. An organization-wide health risk assessment is conducted after each checkup report to highlight high-risk employees for consultation and regular follow-up with physicians and to identify medium-risk employees for health-related discussions. A total of 312 employees underwent health checkup in 2022, for which the Company paid more than NT$434 thousand in subsidies.

A sum of NT$130,000 was committed to this cause in 2022. By providing appropriate support to parties in need, Kaori hopes to contribute what it can to create a better, more friendly environment.

Environmental Education - Coastal Cleanup

On August 13, 2022, Kaori followed Taiwan RETHINK Environmental Education Association to the estuary of Xinjie River, Taoyuan, and took part in the “2022 RE-CONNECTED” Coastal Cleanup event. It was comforting to see so many employees and family members supporting the coastal cleanup. The event has been meaningful in the way that we took action to promote a green lifestyle, and that by cleaning up the ocean, we helped restore nature to its beauty.

Blood Donation

On November 2, 2022, Kaori organized its first blood donation event out of respect for ESG and corporate social responsibility, during which it mobilized employees to help those in need and contribute to decency within society.
“Make your day and make their day by donating blood” has been the first slogan used in the initial stages of our blood donation efforts.