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RATCH Group Public Company Limited's Announcement
# 6/2022
On Supplier Code of Conduct

Intention

RATCH Group Public Company Limited is aware of the importance of suppliers in the supply chain to the organization’s success and sustainability. The Company’s business practices thus comply with laws, the Code of Conduct and international standards. A transparent and fair process is adopted in dealing with suppliers, taking into account economic, governance, social and environmental dimensions. The Company is committed to forge long-term relationship with suppliers and support suppliers’ improvement in sustainability. Suppliers are expected to strictly and completely comply with applicable laws and honor the best practices under governance, environmental and social standards recognized in industry and international levels as well as the United Nations Global Compact, the United Nations Guiding Principles and Human Rights and the International Labor Organization's Declaration on Fundamental Principles and Rights at Work.

RATCH has prepared the Supplier Code of Conduct that serves as the best practices that suppliers in the supply chain shall comply with when doing business with the Company and henceforth improve their operations and their suppliers’.

Scope of this Supplier Code of Conduct

RATCH prepared this Supplier Code of Conduct as operational guidelines for suppliers’ compliance with RATCH Group Public Company Limited’s sustainable development principle. RATCH also supports all of its contractual suppliers, particularly those with high-value transactions or providers of significant products or services, in applying the guidelines in their operations and management with concerns about the environment, society and governance.

RATCH will extend the Code of Conduct to cover the entire operations with expectation that subsidiaries and controlled entities will apply the guidelines with their suppliers and that the suppliers of the Company, subsidiaries and controlled entities will appropriately promote and support their own suppliers’ compliance with this Code of Conduct for mutual and sustainable growth.

Guiding Principles

1. Business ethics
  1. Legal compliance
    Suppliers shall uphold and follow applicable rules and laws enforced in the countries where they operate as well as the legislation involving international trade, anti-competition, protection of confidential information and protection of intellectual property. They should respect related industrial standards and obtain registration and/or required licenses.
  2. Responsible operations
    Suppliers shall operate with integrity, ethics and morality, taking into account their responsibility for stakeholders and avoiding any acts that may cause conflict of interest.
  3. Fight against all forms of fraud, corruption and bribe giving/taking
    Suppliers shall not allow illegal acts or involve with any immoral acts which are fraud, extortion, embezzlement, and giving/taking of all forms of bribe. Suppliers shall demonstrate their commitment in fighting against fraud and corruption and involve sub-suppliers in the process. Should they spot any violations or suspicious acts, they shall promptly notify the Company.
  4. Giving of gifts, souvenirs and receptions
    Suppliers shall strictly follow the Company’s policy on the giving/taking of gifts, souvenirs and commemorative items. Suppliers shall not offer gifts, souvenirs and receptions to the Company's employees and workers, external examiners and others related to the Company with an intent to influence their decisions for suppliers' benefits.
  5. Anti-competition practices
    Suppliers shall promote free competition and not commit any anti-competition act.
  6. Disclosure of information as deemed necessary
    Suppliers shall reveal necessary or relevant information as requested including other information and/or issues that may affect the Company.
  7. Protection of intellectual property
    Suppliers shall respect and not infringe intellectual property of others and the Company. Suppliers shall use intellectual property and the trade secrets of others and/or the Company and/or their partners accordingly to the terms of use. They not disclose the intellectual property without the Company's authorization or consent.
  8. Protection of confidential information and personal data
    Suppliers shall protect and safeguard all types of the Company’s information as stated in contracts and in accordance with relevant laws. These include personal data deemed the Company’s confidential information that shall not be disclosed to others without the Company’s written consent. Moreover, suppliers shall put in place security measures and system that ensures the safeguarding of such information accordingly to laws and/or international standards.
2. Treatment of labor and Respect for human rights
  1. Respect for human rights
    Suppliers shall respect for human rights and prohibit any discrimination on any ground such as race, skin color, sex, language, religion, education, tradition and culture, social status, property, residence, political opinions or any legal or contractual commitments. Suppliers shall abide by the human rights principles that support the Company’s human rights policy.
  2. Respect for labor rights and human dignity
    Suppliers shall promote the human dignity of employees and workers and treat labor with respect. They shall not commit and/or involve with inhumane violations that include physical, mental and verbal abuse, sexual harassment, punishment that causes physical and mental pressure, verbal threats or any acts that leads to involuntary servitude.
  3. Prohibition and avoidance of child labor
    Suppliers shall not employ children aged below the minimum age of admission to employment, as stated in applicable laws and international labor standards.
  4. Equal and non-discriminatory treatment for local and migrant workers
    Suppliers shall abide by the laws in equal and non-discriminatory employment regardless of differences in sex, age, nationality, ethnicity, skin color, religion, faith, social status, family root, health or political opinions. Regarding migrant workers, they shall be treated similarly to local workers in respective countries and accordingly to legal requirements.
  5. Treatment of female workers
    Suppliers shall keep female workers from harmful or unsafe work. Pregnant workers shall be entitled to protection and benefits as required by law.
  6. Right to pursue freely chosen employment
    Suppliers shall employ willing workers and not commit any act that indicates force; involuntary binding or contract; extortion; and threat or abuse. Suppliers shall not employ prison labor or illegal migrant workers and shall not support, engage or involve with labor trafficking.
  7. Pay and benefits
    Suppliers shall follow the labor law concerning pay, welfare and benefits and those should be comparable or equivalent to the industry standards set to help workers support their or their family’s basic needs.
3. Working conditions
  1. Working period
    Suppliers shall follow labor laws concerning employees’ working hours and/or the industry’s best practices on working period, overtime, holidays and applicable leave. Overtime and work on holiday shall be on a voluntary basis and agreed upon by workers.
  2. Termination of employment or contract
    Suppliers shall follow labor laws concerning the termination of employment and follow the requirements on compensations and other severance pay as required by law.
4. Safety, occupational health and work environment
  1. Safe work environment
    Suppliers shall ensure minimum safety and hygiene and provide sufficient facilities and welfare at their operating areas and office as well as the third party’s office. Work environment and equipment shall meet hygiene standards as well as safety, occupational health and safety standards with preventive measures against work-related accidents or illness and first-aid as well as emergency treatments.
  2. Security management
    Suppliers shall comply with the laws and recognized industrial standards on safety and occupational health and set their safety, occupational health and environment measures. Suppliers shall not neglect any acts that may harm workers’ safety and hygiene or cause harms or are below legal or the Company’s standards. Suppliers shall strictly enforce the use of safety equipment, train workers on safety and open for reports on safety and hygiene issues.
  3. Preparation for emergency
    Suppliers shall consider and give importance to risk assessment; identify possible situations or emergencies like fire, explosion, chemical leak or natural disasters; and outline preventive or mitigating measures as well as corrective procedures. Suppliers shall emphasize the assessment of workers’ readiness and equipment and educate workers about emergency plans for appropriate and prompt reactions in times of accident or emergency.
5. Environmental management
  1. Compliance with legal environmental requirements
    Suppliers shall comply with legal environmental requirements, relevant industrial standards and the Company’s environmental management rules.
  2. Management of environmental impacts
    Suppliers shall be committed to preventing and mitigating environmental impacts as best as possible, with mitigating and management measures that meet legal requirements and cover their production sites and operating sites.
  3. Resource utilization, control of pollutants and waste management
    Suppliers shall follow sustainability principles by maximizing resource utilization, consuming energy and water efficiently, tackling greenhouse gases and sourcing eco-friendly products, raw materials or services.
  4. Management of hazardous materials and product safety
    Suppliers shall have in place the procedure and/or measures to control the use of hazardous materials, chemicals and other matters; store, keep, dispose or destroy the materials safely and accordingly to legal requirements; and educate workers about safe work procedures.
6. Social responsibility
  1. Prevention of impacts on community and society
    Suppliers shall demonstrate their responsibility by preventing possible impacts on community and society and not commit any act that may harm the Company’s reputation or confidence in the Company. Suppliers shall also promote and support the employment of local workers.
  2. Management of partners in suppliers’ supply chain
    Suppliers shall give importance to the examination of suppliers’, sub-contractors’ or business partners’ operations and/or compliance with laws; assess possible risks that may be caused by suppliers/sub-suppliers/partners; evaluate end results; and fix problematic issues.
7. Implementation of Code of Conduct
  1. Management system
    Suppliers shall show their intention and commitment to develop and improve their guidelines and actions on the environment, society and governance in line with sustainability principles and apply the guiding principles in the Company’s Code of Conduct.
  2. Grievance and complaint procedure
    Suppliers shall set up a fair grievance and complaint system; design a rectifying procedure and measures to protect the rights of complainants or related persons and protect them from retaliation; and safekeep involved information and evidence.
  3. Investigation and problem-solving procedure
    The Company reserves the right to review this Code of Conduct following an internal audit and/or an audit by external auditors as well as to request for suppliers’ cooperation in acting in accordance with the Company’s Code of Conduct.
  4. Continuous improvement
    The Company encourages and supports suppliers’ actions to continuously improve their operations in line with this Code of Conduct. If there is any supplier that refuses to do so or acts against the principles in this Code of Conduct, the Company may consider responses including the termination of contracts or business agreements.

Enforcement of Supplier Code of Conduct

RATCH holds compliance with this Code of Conduct an important part in the consideration concerning treatment of suppliers in accordance with trade conditions and contractual agreements. The Code of Conduct will be reviewed on an annual basis or in the event of significant situations, to be in line with business conditions. The Office Administration Department, the Office Management Division, and/or departments handling or being involved with the selection and awarding of contracts for the Company, subsidiaries and controlled entities are held responsible for the enforcement of this Code of Conduct on their suppliers; monitor the compliance; and submit compliance reports to the Chief Executive Officer on a biannual basis.

Announcement Date: 20 June 2022
Chief Executive Officer


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