Human Rights

The Company has adhered to the principles of the UN Global Compact (UNGC) and aligned with the spirit and principles of international conventions, including the Universal Declaration of Human Rights (UDHR), the ILO Declaration of Fundamental Principles and Rights at Work, and the UN Guiding Principles on Business and Human Rights, to establish its Human Rights Policy.

The Company strictly complies with local labor laws and supports the core principles of the UDHR, the UN Global Compact, and the ILO Tripartite Declaration of Principles concerning Multinational Enterprises and Social Policy, ensuring that daily operations and all business activities are conducted in accordance with applicable regulations. The Company takes a proactive approach to human rights issues, incorporating them into all aspects of its operations, covering employees, customers, suppliers, and other business partners.

In 2025, the Company continued to promote human rights awareness in weekly meetings to safeguard fundamental labor rights. In the event of significant changes, procedures are handled in accordance with the Taipei Labor Standards Act through labor-management consultation. Furthermore, to promote gender equality and prevent workplace bullying, the Company has established the Sexual Harassment Prevention, Complaint, and Disciplinary Measures, issued a Written Statement Prohibiting Workplace Violence, and provides accessible grievance channels. The Company also undergoes SMETA audits, continuously improving its corporate social responsibility system to effectively protect employee rights. No human rights-related complaints were received in 2025.

The Company places particular emphasis on the following issues and concrete actions: 

Arizon RFID adheres to local labor laws and supports the core principles of international conventions, including the Universal Declaration of Human Rights, the UN Global Compact, and the ILO Tripartite Declaration of Principles Concerning Multinational Enterprises and Social Policy. Following the guidance of these principles, the Company has established its human rights policy to ensure that all relevant personnel are treated fairly and with dignity. The Company is committed to respecting human rights policies in the recruitment, management, and development of employees.

Arizon RFID refers to international human rights conventions, relevant guidelines, and human rights due diligence reports issued by benchmark companies to consolidate human rights risk issues. The Company then evaluates potential human rights risks along the value chain and incorporates them into the human rights risk assessment process. In the current year, an internal human rights risk assessment was conducted among employees through online and paper-based questionnaires.

The questionnaire evaluates each human rights risk issue based on “likelihood of occurrence” and “severity”. Likelihood is scored as: 0 = will not occur, 1 = low likelihood (1%–30%), 2 = moderate likelihood (31%–60%), 3 = high likelihood (over 61%). Severity is scored as: 0 = no impact, 1 = minor, 2 = serious, 3 = very serious. Based on the survey responses, a human rights risk matrix was generated. The human rights risks were categorized into three levels according to the following criteria:

• High Risk: Likelihood > 1 and Severity ≥ 2
• Medium Risk: Likelihood > 1 and Severity < 2
• Low Risk: Likelihood ≤ 1

To enhance employees’ awareness of compliance in their daily operations, Arizon RFID annually reviews and updates relevant policies and conducts refresher training to ensure employees follow legal and ethical principles, safeguard company assets, protect corporate interests, and maintain the company’s reputation. These measures also help prevent violations and support sustainable business operations. In addition, the Company organizes and participates in internal and external human rights-related training programs.

In 2025, the Yangzhou site conducted human rights protection training for employees. The total training hours reached 36 hours, with 36 employee participants. Through these training sessions, employees gained a deeper understanding of workplace ethical standards and social responsibilities, which contributed to improving the work environment, enhancing employee quality, and supporting the company’s long-term development.

Policy Implementation (2025)

The Company conducts annual assessments on human rights and workplace diversity to review labor conditions and fairness of treatment across different employee groups. The 2025 assessment results indicated no medium or high-risk human rights issues, demonstrating the effectiveness of current management measures.

Considering the workforce size and operational maturity of each site, the Company disclosed the following 2025 implementation status for major operational locations:

• Taiwan site: Female employees accounted for approximately 56% of the total workforce, with women holding over 50% of management positions. The workforce spans multiple generations, with employees aged 30–50 forming the core manpower. The Company regularly reviews gender pay differences; in 2025, the average gender pay gap was approximately 5.96%, and the median gap was about 2.78%. The Company also continues to employ persons with disabilities in compliance with regulations, ensuring workplace equality.
• Yangzhou site: Female employees accounted for approximately 45% of the workforce, with a certain proportion in junior and middle management positions. The workforce mainly comprises employees aged 30–50, showing a stable and multi-generational workforce structure. The Company continuously monitors gender pay differences at the Yangzhou site as a basis for management and improvement.

Vietnam, USA (Houston), and Japan sites: These sites are in the early stages of establishment or workforce expansion. At this stage, the Company focuses on policy implementation, and quantitative disclosure will be gradually incorporated as the workforce stabilizes.