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Code of Conduct
for Partner Companies

Semics Co., Ltd. has established a Code of Conduct for Partner Companies based on the 'RBA (Responsible Business Alliance) International Standards' to continue activities to build a sustainable management system for its suppliers. Through this, Semics encourages its partner companies to pursue socially, environmentally, and ethically responsible management activities and to establish a safe working environment.

Operating Principles

This code outlines the expectations of Semics for its partner companies to create a safe working environment, respect the rights of employees, fulfill their environmental responsibilities, and conduct their operations ethically.

The provisions of this code are based on and respect internationally recognized standards, including the UN Guiding Principles on Business and Human Rights, the ILO Declaration on Fundamental Principles and Rights at Work, and the UN Universal Declaration of Human Rights.

Semics may amend this code as necessary, and Semics (or external auditors) may visit its partner companies' business premises to assess compliance with this code and request improvements.

This code applies to partner companies that provide products or services to Semics or products or services used in Semics products, including their subsidiaries, affiliates, primary suppliers, and secondary suppliers.
Furthermore, Semics specifies detailed responsibility standards that outline the expectations for compliance with this code by its suppliers.

Respect for Workers' Rights (Labor)

Partner companies are committed to protecting workers' rights and treating them with dignity and respect, per the international community's consensus. This commitment extends to all forms of workers, including temporary, migrant, student, contract, and directly employed individuals.

01 Voluntary Labor (Prohibition of Forced Labor)

Partner companies must not coerce workers into forced labor, including slavery and human trafficking. When hiring, workers must be provided with a labor contract in a language they understand and retain a copy.
When employing foreign workers, it is essential that the workers personally retain their original documents, such as passports and work permits. Partner companies should not unreasonably restrict workers' movement, who must be free to resign if they wish. Recruitment fees, if any, must not be charged to the workers.

02 Prohibition of Child Labor and Management of Young Workers

Partner companies must not employ children.
A "child" is defined as anyone under the age of 15 or below the minimum age for employment as determined by local laws. Young workers under the age of 18 may work overtime only in limited circumstances as permitted by law and must not work at night or be employed in hazardous conditions. Students in internships must be managed separately according to their educational program.

03 Working Hours

Workers’ total working hours per week must comply with the maximum hours established by local laws and be allowed at least one day of rest every seven days.

04 Wages and Benefits

Wages must meet or exceed the legal minimum wage for hours worked, and overtime or night work must be compensated with premium pay.
Wage deductions as a disciplinary measure are not permitted, except for deductions for time not worked, such as tardiness. Pay statements should be provided to ensure workers clearly understand their earnings.

05 Humane Treatment

Partner companies must respect the human rights of all workers and must not subject them to sexual harassment or abuse, corporal punishment, mental or physical coercion, verbal abuse, or unreasonable restrictions. Disciplinary procedures must be clearly defined and communicated to workers.

06 Non-Discrimination

Partner companies must not discriminate in employment activities such as hiring, promotion, compensation, and training opportunities based on race, skin color, age, gender, sexual orientation, gender identity, nationality, ethnicity, disability, marital or pregnancy status, religion, political affiliation, or union membership.
Medical examinations that could serve as a basis for discrimination against workers or job applicants are prohibited.

07Freedom of Association

Partner companies must respect the right of workers to freely organize and join labor unions, engage in collective bargaining, and participate in peaceful assembly following local laws.
Workers or their representatives should be able to communicate openly with management about working conditions and management policies without fear of discrimination, retaliation, or intimidation.

08Grievance Reporting System

Partner companies must provide effective means for open communication between management and workers, enabling workers to report grievances without impediment.

A Safe Working Environment (Health & Safety)

Semics recognizes that a safe and healthy work environment minimizes work-related accidents and diseases and contributes to the quality of products and services, consistency in production, employee retention, and morale enhancement.

01 Industrial Safety

Partner companies must conduct risk assessments to identify potential exposures to hazards for workers. Based on the findings, they must implement safe process designs, technical/administrative controls, preventive maintenance, safety regulations, and ongoing education. They must also ensure that well-managed personal protective equipment is provided and worn by workers. Additionally, pregnant workers must not be placed in hazardous environments.

02Emergency Preparedness

Partner companies must categorize emergencies based on their likelihood and priority, define them, and establish response plans for each scenario. Emergency exits must be readily accessible, and all employees should participate in regular evacuation drills to ensure and maintain rapid evacuation capabilities.

03Prevention of Industrial Accidents and Diseases

Partner companies must establish systems to prevent industrial accidents, occupational diseases, and recurrence. This includes ① encouraging worker reports, ② classifying and recording injury/disease cases, ③ providing necessary medical treatment, ④ conducting case investigations and corrective actions, and ⑤ facilitating worker return policies.

04Exposure Management to Harmful Agents in the Workplace

Partner companies must regularly measure employees' exposure levels to harmful chemicals, noise, dust, etc., to understand the impact and ensure exposure does not exceed the threshold by implementing technical measures and management supervision. They should conduct employee training on related risks and provide personal protective equipment if risks are not adequately controlled.

05Physical Overexertion

Partner companies must identify physically demanding tasks such as repetitive work, handling heavy loads, and long periods of standing and implement measures such as process improvements and rotational work to prevent musculoskeletal disorders.

06Safety Maintenance of Machinery

Partner companies must assess the safety risks of all production and other equipment. Physical guards, safety devices, and barriers must be provided and properly maintained where there is a risk of injury.

07Canteen and Dormitory Management
(Hygiene, Food, Accommodation)

Partner companies must provide employees with clean toilets, drinking water, and hygienic facilities for preparing, storing, and consuming food. Employee dormitories provided by the partner company or a subcontractor must be clean and safe, with emergency exits, hot water, lighting, heating, ventilation, and lockers.

08Health and Safety Training

Partner companies must regularly conduct necessary health and safety training for workers and post health and safety information in easily visible locations.

09Health and Safety Permits

Partner companies must obtain and maintain all required health and safety permits, keeping them up to date and in compliance.

10Infectious Disease Preparedness and Response

Partner companies must establish and implement reasonable measures in a program to prepare for, prevent, and respond to potential infectious disease transmission among employees.

Environmentally Friendly Workplace Management (Environment)

Semics is committed to understanding the environmental impact of its manufacturing processes and minimizing adverse effects on the community, the environment, and natural resources while protecting public health and safety.

01Compliance with Environmental Laws (Permits and Reporting)

Partner companies must obtain and maintain all legally required environmental permits (e.g., emissions/discharge, installation/operation/modification of prevention facilities) and comply with reporting obligations. They must also continuously stay informed about and comply with the latest legal amendments.

02Pollution Prevention and Reduction in Resource Use

Partner companies are expected to strive to reduce and eliminate resource consumption and waste generation through process improvements, material substitution, preventive maintenance, resource conservation, and recycling/reuse efforts.

03Hazardous Substances

Partner companies must identify all chemicals that could potentially cause environmental pollution if leaked and strive to ensure the safe storage, transportation, use, recycling/reuse, and disposal of these substances. They must also correctly label and manage these substances.

04Solid Waste

Partner companies must understand the characteristics of the waste generated and dispose of it according to legal regulations, making efforts to recycle wherever possible.

05Air Emissions

Partner companies must identify the characteristics of volatile organic compounds, aerosols, corrosive gases, dust, ozone-depleting substances, and combustion by-products in their processes and ensure they are treated and discharged according to regulations. They must regularly monitor the performance of emission control systems.

06Compliance with Regulations on Hazardous Substances in Products and Processes

Partner companies must comply with all relevant laws, regulations, and Semics requirements regarding the prohibition or restriction of specific substances in production and manufacturing, including labeling for recycling and disposal.

07Water Management

Partner companies should strive for water conservation by controlling pollution pathways through recording and managing water sources, use, and discharge. Wastewater must be discharged within the standard limits, recording treatment efficiency.

08Energy Consumption and Greenhouse Gas Emissions

Partner companies are encouraged to reduce fuel consumption and minimize greenhouse gas emissions by improving energy efficiency.

09Boundary Noise Management

Partner companies must identify, control, monitor, and mitigate noise originating from their operations that affects boundary noise levels.

Management System

Partner companies must develop and maintain a management system that enables continuous improvement for compliance with this Code of Conduct, relevant laws, and customer requirements to the fullest extent.

01Commitment to Compliance

As responsible parties for compliance with this Code of Conduct, the management of Partner companies must document their commitment to compliance and post it within their premises.

02Management's Duties and Responsibilities

The company's senior management and representatives responsible for implementing the management system and related programs must be identified. They are required to review the operational status of the management system regularly.

03Response to External Requirements

Partner companies must have procedures in place to identify, monitor, and understand the latest laws and customer requirements, including this Code of Conduct.

04Risk Assessment and Management

Partner companies must identify potential risks for labor, ethics, environment, and health and safety. Management plans must be developed for risks with high likelihood and impact, and their implementation status must be reported to the management.

05Setting and Managing Objectives

Partner companies must establish and periodically evaluate objectives and implementation plans in labor, ethics, environment, and health and safety aspects.

06Training and Communication

Partner companies must operate training programs for managers/workers to comply with this Code and regulations. They must share transparent information about the policies, objectives, and performance with workers, subcontractors, and Semics.

07Employee Feedback and Improvement

Partner companies should assess employees' understanding of this Code, gather feedback, and improve procedures for its effective implementation.

08Audits and Evaluations

Regular self-assessments must be conducted to verify compliance with this Code, local laws, and regulations.

09Corrective Action Process

Procedures must be established to appropriately correct deficiencies identified through internal or external evaluations, inspections, investigations, or reviews.

10Documentation and Record Keeping

Partner companies must manage documents and records per relevant laws and internal document management regulations.

11Supplier Responsibility

Partner companies must communicate this Code to their subcontractors, require compliance, and conduct compliance assessments.

This Code of Conduct is developed utilizing principles demanded internationally by the RBA (Responsible Business Alliance) and the industry.

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