GOVERNANCE Corporate Governance
• Supplier Management Measures
Our company has established a Supplier Management Policy and places significant importance on reasonable and specific regulations for suppliers regarding issues such as environmental protection, occupational safety, and labor rights.
1. Environmental Protection: We prioritize minimizing adverse impacts on human health and the environment, considering cost-effectiveness, technological feasibility, and financial viability. We strive to implement the best feasible pollution prevention measures and control technologies to reduce greenhouse gas emissions and mitigate any potential negative effects.
2. Occupational Health and Safety: When hiring employees, we ensure that they are informed about the work environment, hazards, and relevant safety regulations, as well as the measures to be taken for safety and health. We implement labor safety and health management practices and provide on-the-job education and training to enhance employee awareness and competence in occupational safety and health.
3. Labor Rights: We adhere to regulations such as the Gender Equality in Employment Act, Sexual Harassment Prevention Act, and Labor Standards Act. If there are incidents that cause social concerns, such as failure to participate in labor and health insurance, forced labor, employment of child labor, violation of gender equality in the workplace, or sexual harassment, we may request the supplier to make improvements within a specified timeframe. If the issues are not addressed or there are repeated violations, we reserve the right to terminate the contract.
• Implementation of Supplier Management Policy
1. Tait Marketing & Distribution Co., Ltd. has established a "Standard Operating Procedure for Factory Visits by OEMs and OEMs" for its own-branded raw material vendors and OEMs. In addition to the factory and new material vendors being audited by Tait Marketing & Distribution Co., Ltd. food safety personnel, the audits of existing raw material vendors are conducted by the OEMs.
(1-1)Tait's own-brand products are manufactured by contract manufacturers, and we have strict quality requirements for these suppliers. In the year 2022, we collaborated with 9 domestic first-tier contract manufacturers, all of whom obtained ISO 22000 or FSSC 22000 certifications. The sales revenue from products produced by these contract manufacturers accounted for 24.36% of the net operating income in our annual financial report.
2.Evaluation items for suppliers：
(2-1)For the new OEMs, the following items will be evaluated.：
(1)Factory registration certificate/non-registered number
(2)Water quality inspection records / drinking water inspection records
(3)Laboratory reports such as microbiological tests
(4)Environmental and hand hygiene inspection reports
(5)Process inspection records
(6)Records of measuring instruments
(7)Recycling Exercise (sop standard book)
(8)人Staff training records
(9)Personnel health check records
(10)Package material dissolution test
(11) Pest and rodent control plan and implementation report
(12)List of additives and permit check
(13) HACCP CCP point check
(14)Hygiene management diary
(15)Whether the wastewater treatment
(16)Corporate Social Responsibility Management Charter
(17)Process foreign substance management
(2-2)For continuous cooperation with OEMs, the following items will be evaluated.：
(1)Plant facilities and environmental hygiene management
(2)Personnel hygiene regulations and control
(3)Process control
(4)Quality control
(5)Storage and transportation control
(6)Establishment of environmental protection and prevention related regulations
(2-3)Evaluation result：
(2-3-1)The number of domestic first-tier OEMs with which we cooperated in FY 2022 was 9, and 9 were evaluated. 100% of them were evaluated, and the evaluation results were all satisfactory. The number of OEMs evaluated in FY2022 accounted for 24.36% of the total number of manufacturers with import transactions in FY2022.
(2-3-2)In the year 2022, there were 2 new contract manufacturers and 4 existing contract manufacturers who underwent an online document review process for evaluation. All of them were assessed and deemed qualified contract manufacturers.
(2-3-3)In the year 2022, there were a total of 9 domestic first-tier contract manufacturers that we collaborated with. All 9 contract manufacturers underwent evaluation, and the evaluation results for all of them were deemed qualified. The number of contract manufacturers evaluated in 2022 accounted for approximately 11% of the total number of suppliers engaged in purchasing transactions during that year.
(2-3-4)In the year 2022, there was one evaluator who conducted evaluations on second-tier suppliers, including one raw material supplier. The evaluation results for all the second-tier suppliers were deemed qualified.
(2-3-5)In the year 2022, the sales revenue from uploaded soybean products, seafood products, and agricultural and plant-based products accounted for approximately 4.06% of the net operating income for all products.
(2-3-6)In the year 2022, there were a total of 6 cooperating primary processing factories, accounting for 100% of the tea procurement. From the harvest of tea leaves to the primary processing factories, the tea suppliers first send the tea leaves for pesticide residue testing. Only when the tea leaves meet the standards are they accepted. There were 3 cooperating refined tea factories in 2022, where the refined tea factories blend the primary processed tea according to demand. The blended tea leaves undergo mixing and roasting, followed by another round of pesticide residue testing. Dejiyang Corporation also conducts sampling and testing for pesticide residue during the acceptance of each batch of tea leaves. Production is only carried out after the tea leaves pass the pesticide residue testing. Before the tea raw materials are put into production, each batch of tea leaves undergoes three rounds of pesticide residue testing on the tea leaves. Through strict quality control at each stage, we ensure the highest level of quality management.
3. Before engaging with suppliers, our company requires them to fill out a Supplier Commitment Letter, confirming their understanding of our company's transparency policy. During supplier evaluation, any violations of laws or regulations by the suppliers will be considered as part of the evaluation criteria.
Once our company establishes transactions with key suppliers, both parties are required to sign a sales and purchase contract that includes provisions for corporate social responsibility (including environmental protection, occupational health and safety, and labor rights). The contract stipulates that both parties shall adhere to policies on corporate social responsibility, conduct business in accordance with ethical, legal, and public requirements, and consider the impact on society and the natural environment. Either party may terminate or dissolve the contract at any time if there is a violation of the corporate social responsibility policy.