Sustainability Development
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Corporate Governance
In 2022, the world was impacted by COVID-19, the Russia-Ukraine War, the continuation of the China-United States trade war and the impact of international trade protectionism, which makes the high uncertainty of the global. Under this circumstance, SiRUBA management team continues to implement the business plan, including deeply excavating key markets in the Asia Pacific, developing high added value models energy-saving and consumption reducing products, establishing brand marketing policies to enhance brand value and strengthen core competitiveness, and continuously providing high-quality products and services to meet customer needs. In 2022, stable revenue was maintained, with a consolidated revenue of 2.471 billion.
Regarding of the environment, we actively promote the measures such as energy saving and carbon reduction, recycling, and green procurement, and a series of “Project ReSEW’s” activities are jointly organized by the SiRUBA Foundation, the Taiwan Textile Research Institute, local social welfare organizations, and charities, through Sewing machine R & D testing machine textile waste, waste fabrics and various textile waste fabrics, stock fabrics, defective products, and sample fabrics which were re-sewn, also upgraded the renewable value of recycled resources, providing industrial sewing machines for young designers to create, converting waste into beautiful artworks, and creating employment opportunities by training rural and indigenous women in sewing technology.
Also, we passed the ISO 14001 environmental management system certification, showing our commitment and strength to environmental protection. The relevant environmental performances are as follows:
- Complete greenhouse gas inventory and third-party verification in 2022
- 99.17% of total renewable materials in 2022
- Product development of micro-oil sewing machines to reduce energy consumption and environmental pollution
- Energy-saving sewing machine products save 34.4% energy compared to conventional-induction motors
Good corporate governance is the foundation of the company’s operating. We insist the principles of transparency, fairness, and responsibility establishing a Complete internal control and risk management system, also, regularly disclose our financial and non-financial information to the public. We also emphasize corporate ethics and compliance with laws and regulations, and have established a Sustainability Policy and Code of Conduct that we require all employees and partners to follow. In addition, we also founded a Sustainable Development Committee, with senior executives holding a post of its Chairperson and Head of Corporate Governance to plan and oversee the effectiveness of our strategy and implementation of environmental, social and corporate governance aspects of sustainable development.
On the social aspect, we concern about the welfare and development of employees providing a diversified welfare system including education training, health promotion, and employee shareholding trust. We set up an employee communication platform and a grievance mechanism for employees to express their views and needs and actively participate in social welfare activities, such as donating goods to underprivileged organizations, supporting food bank relief activities, and sponsoring practical education for the apparel department, so as to give back to the society and work with the community for the betterment of the community.
Other significant achievement in 2022 are as follows:
- RESEW Plan ”New Hope of RESEW” provides job opportunities
- RESEW’ s Lab & VTC Program trains Production Garment Technicians
- Nantou Jesus Church Love Art Classes strengthen society bonds, encouraging sharing and creation.
- Sponsoring the sporting of the New Taipei Municipal Jian-shan Junior High School, Hualien Guangfu Elementary School, Zhong-He Junior School, Cheng-Gong Commercial Aquatic Vocational School and other 12 schools.
- Participate in the Relief Society Food Bank Volunteer Day.
- REHOW | Kuo I-Chen Video Installation Exhibition Promotes Waste, Recycling and Sustainable Thinking
- RESEW Plan-Education Forever: Waste Recycling Promotion
Looking into the future, there still have much room for improvement and enhancement on the way of sustainable development. We will continue to learn and take a reference of international sustainability indicators and standards, communicating and exchanging ideas with various parties, in order to continuously enhancing our sustainability and influence. We will also keep participate in various sustainability-related activities and evaluations so that more investors and stakeholders Can understand our sustainability concepts and practices, and work together to promote sustainable development and create a better future!
KAULIN MFG. CO., LTD., founded in 1965, is globally renowned for its “SiRUBA” Silver Arrow sewing machine. As the professional industrial sewing equipment R&D and manufacturing company, we uphold the belief of “The customer is the partner,” aiming to create perfect solution for each customer.
As technology continues to advance, so does industrial sewing machinery. SiRUBA, a sewing machine development enterprise, has spent the past half-century dedicated to delivering the finest products and services. From order placement and production to delivery, we meticulously oversee each step of the process to uphold our initial commitment to customer service. Amid countless challenges, our perseverance remains unwavering.
SiRUBA is committed to sewing machine development, offering a diverse range of products tailored for various garment sewing projects. Our products span from over lock and binding sewing machines to multi-needle sewing machines, all of which enjoy popularity and acclaim. Moreover, our selection encompasses flat-bed sewing machines and electronic lock stitch and over lock sewing machines.
With the dawn of the intelligence era, we have invested ahead of our peers in the development and production of automated sewing equipment. These automated machines merge mechanical precision, speed and consistency, resulting not only in reduce labor costs, but also in heightened production quality and efficiency.
Adapting to the demands of the contemporary information age, SiRUBA has introduced a more intelligent and convenient product line and service network. The incorporation of QR code scanning for products and provision of official product certification services furnish customers with added assurance when purchasing SiRUBA products, bolstering corporate reputation and customer relations.
Furthermore, we have established an innovative E-commerce system to streamline the B2B transaction process, fostering swift and precise commodity trading cooperation.
SiRUBA s service extends across the globe; we serve as a steadfast support for our Customers businesses. No matter your location, we stand by your side.
When challenges arise, SiRUBA will be your primary choice. We offer the most effective, dependable, and comprehensive solutions.
Industry Promotion
SiRUBA is committed to promoting the industry and actively participate in external associations and organizations. Through such engagement, we gain insights into both domestic and international trends and standards, which are essential factors in guiding our company’s sustainable development efforts.
A robust corporate governance framework encompasses comprehensive Board of Directors operations and effective risk control. This not only mitigates the operational risks but also enhances the company’s competitiveness and brand value. We’re a dependable and responsible company, adhering to legal compliance and operating with integrity. Additionally, we uphold sound corporate governance to ensure the company’s ethical rights and interests of investors and other stakeholders.
The SiRUBA shareholders’ meeting comprises all shareholders and is responsible for making decisions on crucial company matters while also receiving regular reports from the Board of Directors. The Board of Directors serves as the supreme governing body. Board members have the duty to diligently oversee operating policy, financial performance and ensure legal compliance. The chairman of the board holds the responsibility of defining strategic objectives, approved by the Board of Directors. Backed by the chairman’s proficient governance skills, the Board of Directors approves the appointment of the President, who is accountable for day-to-day operational planning and management, as well as formulating plans for sustainable operation and strategic development. The President leads the management team in reporting the implementation’s effectiveness to the Board of Directors.
Furthermore, our financial statements are professionally audited and certified by expert accountants, ensuring accurate and timely compliance with legal requirements. Looking ahead, our goals include enhancing the Board of Directors, amplifying information transparency, and progressively integrating sustainable governance strategies into the corporate governance framework.
Governance Structure
SiRUBA s dedicated to establishing a robust corporate governance structure that underpins our sustainable operating. To achieve this, we have instituted the Board of Directors, Compensation Committee, The Audit Committee, Sustainable Development Committee, among others. These entities ensure procedures for oversight and checks and balances. Our operations adhere to the respective “Rules Governing the Conduct of Business of the Board of Directors,” “Rules Governing the Organization of the Compensation and Remuneration Committee,” and “Rules Governing the Organization of the Audit Committee.”
Governance Unit Responsibilities
Board of Directors
The SiRUBA Board of Directors functions as the highest governing authority and a pivotal center of major operating decision. Comprising seven members, including three individual chairmen, the Board includes a Compensation Committee, an Audit Committee and a Corporate Sustainability Committee. Board members possess extensive experience and professionalism in financial, business, economy, developmental, and managerial domains.
To enhance the Board’s independence and diversity while providing strategic guidance, SiRUBA adheres to the. Directors and Code of Practice on Corporate Governance. The Chairman of the Board (including the individual chairmen) is selected through a candidate nomination system. Throughout the Board nomination and selection process, the company obtains written statement, employment history, and a family relationship information from each director, including independent directors. This verification aims to ensure the independence of the director, their spouse, and relatives up to the third degree of consanguinity. Furthermore, all independent directors meet the qualifications stipulated by the “Regulations Governing the Establishment and Compliance of Independent Directors of Public Companies” issued by the Financial Supervisory Commission and Article 14-2 of the Securities and Exchange Act. They are granted the authority to actively participate in decision-making and express their opinions under Article 14-3 of the Securities and Exchange Act, enabling them to independently fulfill their relevant duties and responsibilities.
The considerations of SiRUBA’s Board of Directors included the ability to make judgments about operations, accounting and financial analysis ability, business management ability, crisis management ability, knowledge of the industry, an international market perspective, leadership ability, decision-making ability, and more. The Board of Directors meet at least hold quarterly to assist in the achieving the company’s operating results. The Auditor-in-Charge attends the Company’s regular board meetings and provides an audit report. Important decisions will be published on Taiwan Stock Exchange’s public information observation station and our website. Our company held 5 board meetings in 2022 with an attendance rate of 80%.
Mechanisms for Avoiding Conflicts of Interest
SIRUBA’s Rules of Procedure for Board of Directors’ Meetings contain a provision regarding the disqualification of directors from participating in meetings. This provision stipulates that any director who holds an interest in a matter detrimental to the company’s interests or that of a legal entity represented by the director may attend the meetings to express their opinions and answer questions. However, such directors are not allowed to take part in discussions or voting. They are required to abstain from both discussion and voting and are prohibited from acting as proxies for other directors when exercising their voting right. In 2022, there were two occasions when the Board of Directors refrained from voting in order to prevent conflicts of interest For specific details about these instances, please refer to section P25-III.
Members of Board of Directors
The Board of Directors should hold meetings at least once a year to review the company’s operating performance, discuss important strategies, and address significant issues, including economic, environmental, and societal concerns, as well as risks and opportunities. During these meetings, the authority figures should ensure the proper handling of follow-up reports in subsequent meetings. When the Board of Directors provides information to its members about various proposals and reports, it’ s important to review the content of the reports in advance. This review aims to identify any situations involving interested parties that require appropriate avoidance measures. The directors should be reminded of this beforehand.
The company communicates crucial information in line with its internal operational procedures for managing such information and preventing insider trading. In 2022, we shared the outcomes of significant events and released a total of 37 items of essential information on the Market Observation Post System (MOPS).
The Board Education and Performance Assessment
To enhance the ethical standards of conduct among our internal staff and to uphold a culture of integrity, we have established not only a “Code of Ethical Conduct” and “Guidelines for Ethical Operations and Behavior,” but also a comprehensive framework encompassing conflicts of interest prevention, avoidance of personal gain opportunities, confidentiality responsibilities, equitable transactions, safeguarding and appropriate use of corporate assets, adherence to legal regulations, encouragement of reporting unlawful or unethical actions, and disciplinary measures, among others. All these pertinent guidelines have been endorsed by the Board of Directors, put into practice, shared with independent directors, reported at shareholders’ meetings, and communicated to employees. Furthermore, anti-corruption policies have been promoted. Concurrently, we actively advocate for directors’ adherence to the ” Corporate Governance Practices for Listed and OTC Companies.” Throughout their tenures, directors are encouraged to commit a minimum of 6 hours annually to courses on finance, risk management, business, commerce, legal matters, accounting, sustainability, and corporate governance, as well as internal control system and financial reporting responsibilities. We consistently arrange courses for both directors and employees, covering themes like corporate governance, legal compliance, risk management, prevention, money laundering prevention and counter | terrorism. By continuing to provide these courses, we reinforce our commitment to fostering strong corporate governance, legal adherence, risk management, and proactive measures against money laundering and the fight against terrorism.
We have established “Board Performance Evaluation Measures,” which are based on Article 4 of the organizational regulations of the Salary and Remuneration Committee. This stipulates an annual performance appraisal to be conducted before the first quarter of each year. The assessment is carried out through a self-assessment questionnaire, covering aspects such as attendance at board of directors, meetings, understanding and engagement in pre-meeting proposal discussions interaction with the management team, compliance with laws, regulations, and codes of practice, efforts to enhance corporate governance, participation in continuous learning of corporate governance related courses understanding of the company and its industry landscape, and other criteria designated by the competent authority or the board of directors. The primary objective is to regularly review the performance of directors and managers, including their grasp of the management team’s understanding of the company and its industry. To enhance the objectivity of the evaluation process, our company conducts external assessments at least once every three years. These evaluations are carried out by professional independent institutions or teams of external experts and scholars.
SiRUBA is in the initial phase of sustainable development. We have not yet integrated ESG sustainable development goals, performance and individual compensation of directors and managers. We’ll continue to prioritize the ongoing trend of sustainable development. When the appropriate time comes, we will engage in discussions with the compensation committee to determine whether to incorporate sustainable performance within the parameters of compensation evaluation.
The Audit committee
Our company has established an audit committee in accordance with the articles of association and Article 3 of the “Measures for the Exercise of Powers by Audit Committees of Public Companies.” The committee is composed of three independent directors who possess professional impartiality. The operation of the audit committee are geared towards ensuring the company’s adherence to pertinent governmental laws and regulations. The committee is responsible for supervising the following matters:
- Ensuring their reflection in financial statements.
- Verifying the independence and performance of the external auditor.
- Ensuring the effective effective implementation of internal control within the company.
- Overseeing compliance with the laws.
- Managing and controlling existing or potential risks within the company.
Throughout the year 2022, the Audit Committee conducted a total of 5 meetings, achieving an attendance rate of 93.3%.
Compensation Committee
To enhance corporate governance and refine the remuneration system for the company’s directors and managers, SiRUBA adheres to Article 14﹣6 of the “Securities Exchange Law” and the “Measures for the Establishment and Exercise of Powers of the Remuneration Committee of Companies Listed or Traded at Securities Firms.” The establishment of the Remuneration Committee is not only to assess the remuneration policy and system for the company﹁s directors and managers from professional and objective standpoint but also to formulate organizational regulations governing the Remuneration Committee s operations, thus ensuring compliance.
Our company is obligated to provide directors’ compensation as outlined in Article 23 of the Company﹁s Articles of Association. If the company achieves profits within the current year, a portion ranging from 2% to 8% of employee compensation and no more than 3% of director compensation will be allocated. In the case that the company still carries accumulated losses, the compensation sum shall be pre-allocated, followed by the allocation of employee and director compensations as per the prior proportions. Should the company’s annual final account display a post-tax net profit for the current period, the company must first settle taxes in line with legal obligations to offset previous year losses. Subsequently, a statutory surplus reserve amounting to 10% of the remaining balance shall be set aside, and if necessary, make special surplus reserves may be established﹒ Founded upon this surplus distribution strategy and the accumulated undistributed surplus from preceding years, the board of directors is entrusted with the task of devising a distribution plan. This plan must then undergo review by the shareholders’ meeting for final approval.
The annual compensation for company managers encompasses salary bonuses, and employee surplus distribution compensation. The determination of relevant salary and Compensation is grounded in industry-standard payment levels, while also evaluating the justifiability of the correlation between individual performance, company operational performance, and potential future risks. The Salary and Compensation Committee provides recommendations to the board of directors, which are taken into consideration for decision-making. For this year the annual overall salary ratio between the general manager and employees is not disclosed due to organizational confidentiality. However, it will be assessed and divulged in the near future in accordance with public information disclosure norms.
In the year 2022, the Compensation Committee convened a total of 4 meetings, achieving a perfect attendance rate of 100%. For an in-depth understanding of the committees operations, please refer to the annual report on P36.
Sustainable Development Committee
Our committees role is to aid the board of directors in furthering corporate social responsibility and enhancing corporate governance, thereby realizing the objective of sustainable operations. In July 2021, the board of directors at SiRUBA passed a resolution to institute a “Corporate Sustainable Development Committee.” This committee periodically reports the implementation outcomes of sustainable development and forthcoming action plans to the board of directors. For information regarding the committee’s meetings, please consult page 37 of the annual report.
Sustainable Development Committee convenes meetings twice a year as a general guideline, during which discussions revolve around operational objectives and team achievements. The frequency of meetings may be adjusted when necessary due to alterations in the environment and legal framework. In addition to regular attendees, the chairman of the board can invite working group members based on the motion’s content. All decisions and approved matters are meticulously documented by Sustainable Development Committee. The committee successfully finalized the revised Code of Practice for corporate sustainability ESG risk management and program components in 2022. This accomplishment was reported to Board of directors on November 1*, 2022. Our aim is for this code to serve as a catalyst in promoting the implementation of company’ s sustainable development practices﹒In line with our commitment
to augment information transparency and fortify data security, and driven by the principles of the PDCA cycle management, our objective is to steer KAULIN on an unwavering trajectory of continuous improvement and growth in the realm of sustainable development.
Audit room & Internal Audit
The internal audit office is an independent unit, affiliated to the board of directors, responsible for the implementation of the audit business, and the company assigns full-time auditors. The appointment and dismissal of the audit supervisor are all approved by the board of directors; the internal auditors perform their duties in an objective and fair manner, and the audit supervisor also attends the report of the board of directors in accordance with the regulations. In the fourth quarter of each year, the audit plan for the next year is drafted based on the results of the risk assessment, and then implemented in accordance with the audit plan approved by the board of directors, and the audit results are made into an audit report, and the internal audit deficiencies found during the audit process and the improvement measures of the responsible units , and submit it to the chairman for review to ensure the continuous and effective implementation of the internal control system. Annual audit plan, audit personnel roster and training hours, implementation of annual audit plan, internal control statement, internal control system deficiencies and abnormalities improvement, etc. are reported to the competent authority every year in accordance with laws and regulations. There are no major deficiencies in the internal audit in 2022, and all related abnormal improvement items have been completed.
Financial performance constitutes the cornerstone of our company s operations, and the relentless pursuit of maximum profit remains our unwavering goal. Since its inception, SiRUBA has adhered to a company culture centered around innovation, teamwork, efficiency, and enthusiasm, all of which are directed towards sustainable development. Our aim is to achieve sustained financial success by upholding technological leadership, ensuring customer satisfaction, promoting employee participation, bolstering shareholder value, and fulfilling our social responsibilities.
In the face of a diverse and dynamic environment, we persist in delivering high-quality products while continually refining our designs, processes, quality control and testing procedures. Our commitment extends to advancing process technology and optimizing energy utilization, thus striving to consistently achieve ambitious growth targets and development of new products. With numerous years dedicated to the sewing industry, SiRUBA offers a comprehensive product line that caters to our Customers product development needs firmly establishing our leadership role.
Moreover, thanks to robust corporate governance practices, we continuously strengthen our operations by integrating the supply chain, reducing the costs, and enhancing competitiveness. This not only instills confidence in our stakeholders, including shareholders, employees, suppliers, and customers, but also fosters a mutually beneficial environment conducive to sustained prosperity and operations.
Integrity Management
All departments of SiRUBA will regularly engage with stakeholders through established communication channels. If potential significant negative impacts between stakeholders and the company are identified, the responsible department will conduct due diligence on the stakeholder’s financial situation and present the findings to the chairman. The chairman will assess whether reporting to the board of directors is necessary based on whether the specific outcomes have caused substantial harm to the company’s overall operations. Subsequently, the board of directors will review the due diligence report submitted by the department and oversee its Implementation. For the year 2022, there have been no potential negative major adverse events between SiRUBA and relevant parties, thus no instances requiring reporting to the board of directors have occurred. SIRUBA acknowledges that the current company practice of solely conducting financial due diligence on stakeholders is insufficient. In the future, the scope of due diligence will encompass stakeholders’ compliance records, environmental protection, labor rights, and other areas, ensuring 3 more comprehensive assessment of stakeholders and enabling the board to effectively address potentially negative material impacts.
SiRUBA’s organizational culture is founded on principles of law and compliance, with integrity as our foremost core values. The company conducts its business operations with honesty and a commitment to upholding the law. Through its “Operating Procedures and Behavior Guidelines and “Ethical Code of Conduct”, SiRUBA underscores its core values of integrity, innovation, discipline, positivity, customer trust and the mission foster global connections through innovation and care. The company advocates for transparent management, providing annual reports to the board of directors. During the on boarding process for new recruits, the human resources department conducts awareness campaigns to instill a sense of integrity among colleagues. Simultaneously, management is expected to set an example, adhering to the principle of integrity, thus subtly shaping the company’s over arching culture of integrity.
SiRUBA has established complaint and reporting channels, internally and externally, alongside reward and punishment systems. Continuously monitoring developments in domestic and international integrity management regulations, the company encourages directors, managers and employees to offer suggestions for review and improvement. By implementing integrity management policies and promotional initiatives, the company aims to enhance the effectiveness of its corporate integrity management. In 2022, KAULIN did not receive any reported cases. Additionally, through the Corporate Governance Group within the ESG Committee at SiRUBA is responsible for designing and reviewing complaint channels and overseeing case handling. Going forward, this aspect will be evaluated and discussed during stakeholder communication meeting with customers aiming to enhance our complaint handling procedures.
Regulation Compliance
First and foremost, adhering to laws and regulations is the cornerstone of an enterprise’s secure and sustainable growth. Effective compliance with laws and regulations not only prevents wrongdoing and reduces the labor, time, and expenses associated with legal investigations, fines, lawsuits, and negative publicity, but also bolsters the enterprise s reputation. This, in turn, attracts high-quality independent directors, employees, and partners, leading to a mutually beneficial scenario for the enterprise, its shareholders, and its stakeholders. In terms of corporate governance, we have established an Audit Committee to oversee the Company’s financial status and internal control system. Additionally, we have developed a code of conduct for the Board of Directors, enhancing the Board’s efficacy.
Secondly, in the realm of personnel management, the Company has devised and implemented a reporting channel. Concurrently, the management leads by example, requiring every employee to ensure that their business conduct adheres to both legal and regulations， as well as the Company﹁sown policies and regulations. This guarantees that each unit upholds compliance through internal control mechanisms. Concerning personnel training, the company provides training for employees across different units and ranks on the laws and regulations pertinent to business execution, ensuring that the company’s operations align with the requisites of various laws and regulations. Additionally, the Company safeguards the legitimate labor rights of its employees in accordance with labor laws and regulations.
Furthermore, concerning environmental safety and hygiene, SiRUBA has implemented an environmental management system, an occupational safety and health management system. The company adheres to the EU RoHS green environmental protection regulations. Not only does it requires suppliers to furnish materials devoid of hazardous substances, the company also abstains from employing raw materials containing hazardous chemicals during production process. Full compliance with RoHS regulations, as well as rigorous management of hazardous substances within suppliers raw materials, is upheld. Additionally, the company maintains an emergency response plan within the factory premises. An Emergency Response Command Center has been established, along with an organized Emergency Response Team, responsible for managing and addressing emergencies. In addition to these measures, the company is dedicated to furnishing all employees with a secure and equitable working environment, ensuring the safeguarding of their rights and interests. Regular safety and health education and training initiatives are conducted for employees. Necessary health and first aid facilities are provided, aligning with the company’s commitment to reducing risks to employee safety and health, and preventing occupational disasters.
In 2022, the “ESG Risk Management Policies and Procedures” were endorsed by the board of directors. As part of this initiative, a dedicated risk management team will be established under the umbrella of Sustainable Development Committee. This team will delineate diverse risks in alignment with the company’s overarching operational policies. Its aim will be to mitigate potential losses while remaining within an acceptable risk threshold. This endeavor is geared towards augmenting the company’s value and achieve the optimal allocation of company resource.
Climate Change Management
SiRUBA has implemented an internal control system and internal audit framework. Additionally we have formulated policies and processes of ESG risk management, and risk management encompassing sustainable operation, environmental factors, societal considerations and governance standards. Given the increasing significance of energy, climate change, and extreme weather conditions due to global warming, we have established a Task Force on Climate-related Financial Disclosures (TCFD) framework This framework is designed to address the impact of climate change on our operations. The TCFD framework is structured around governance, strategy, risk management, indices and targets. Each member of the Sustainable Development Committee is responsible for identifying
climate-related risks and opportunities. Subsequently, they develop strategies to address these factors, incorporating recommendations from external consultants. The committee regularly reports to the Board of Directors on an annual basis, ensuring effective implementation and monitoring of the outlined strategies.
Information Security
To meet expectations of stakeholders safeguard product and service information, prevent unauthorized access, alterations, use, disclosure and potential losses resulting from natural disasters, earn the trust of customers and suppliers, and ensure the uninterrupted functioning of critical business operation. Furthermore, to fulfill commitment to shareholders, the company employs information security management. This approach guarantees the confidentiality, integrity, and availability of crucial information assets, while also ensuring compliance with pertinent laws and regulations.
Information Security Organization
We have established the information security team, led by the director of the general management office as the convener. This role encompasses information security risk management and performance target assessments. The head of the information department assumes the position of director-general within the team, responsible for the planning and execution all information security management tasks. Additionally, they present the actual outcomes of information security performance targets to the convener through meetings. Representatives from each unit serve as committee members, supporting the Director-General in the implementing of information security initiatives.
Information Security Policy
To enhance information security management, ensuring security of data, system, equipment, internet security, as well as the confidentiality, completeness, usability and legality of information assets. This also involves compliance with the stipulations of applicable laws, regulations and contracts, guarding against both internal and external deliberate or inadvertent threats. We aspire for each employee to adhere to the following expectation:
- Maintain the confidentiality and integrity of information assets.
- Ensure data access is regulated based on departmental functions.
- Sustain the operational status of information systems.
- Prevent unauthorized modification or use of materials and systems.
- Regularly conduct information security audits to ensure its continued safety.
- The company’s information system should establish of site backups in accordance with risk levels thereby guaranteeing the security of information data.
- Given the diverse utilization of the internet, continuously enhance security measures to mitigate threats.
Information Security Guidelines
Our information department assumes full responsible for information security. This entails drafting information security policy, formulating plans for the implementation of information security protection, as well as promoting and executing information security policies. In a bid to counteract diverse internal and external information security threats, the company employ a range of s information security measures to enhance the overall security of the information environment.
- User Rights Management: Users need to be assigned varying access rights based on the security levels.
- Security management of operating system usage rights: The installation of the operating system should adhere to the company regulations and involve joining the company﹁s network domain for centralized management. The operating system requires regular updates, and anti-virus software should be installed on company mainframes and computers. The scanning engine and virus definitions need to be automatically downloaded and updated daily. User account passwords should be regularly updated and configured.
- Software Security Management: Apart from installing application, utility, and package software necessary for information operations, the installation of other specialized software necessitates separate application and approval prior to installation.
- Firewall Configuration: The firewall should incorporate a filtering mechanism to block access to certain software and URLs, , thus averting any impact on network e quality and security.
- Online Communicating Security Management : External VPN (remote) access and internal access (file transfer (FTP), instant messaging (LINE), specialized connection (HTTPS), and other network applications) must be approved by information unit’s director and undergo a review and authorization process.
- System Security Management: Only authorized operators within the Information Unit should be permitted to handle source code storage and revision. Different program execution privileges for users should be established in line with business requirements.
- Off-site Backup Management: Systematic disaster recovery and database backup management protocols should be established.
- Asset Management: Equipment within the computer room and personal computers should be assigned asset numbers and subjected to regular inventory checks.
- Enhancing employees awareness of information security through continuous communication and education.
Annual results in 2022
- No major information security incident in 2022.
- In 2022,the information security audit was concluded, revealing no instances of non-compliance. The audit results affirmed that information security protection capabilities and configurations are well-managed and comprehensive.
Suppliers hold a pivotal role as SiRUBA’s most important partners. Apart from providing customers with economically valuable products and services, in the wake of heightened global human rights awareness and the impact of climate change, we place equal emphasis on supplier and environment development. This dual focus propels the company’s sustainable growth and bolster our ability to address the repercussions of climate change. We establish enduring partnerships with our suppliers, actively ensuring their alignment with social and environmental responsibilities throughout the supply chain. SiRUBA remains committed to consistent communication with our partners and investment in sustainable initiatives alongside our upstream suppliers. This dedication aims to cultivate a secure, amicable, environmentally conscious socially responsible and enduringly sustainable supply chain within the sewing industry.
Supplier Development
SiRUBA upholds the principles of corporate citizenship, ensuring a secure working environment within the supply chain, upholding the dignity of labor, fulfilling environmental responsibilities, and adhering to ethical conduct. In the process of selecting new suppliers, alongside assessing factors like delivery quality, quantity, timing, and cost SiRUBA intends to incorporate the concept of corporate sustainable development into the supply chain starting from 2023. This initiative will involve the execution of a sustainable development commitment letter and an expansion of the criteria for supplier selection and evaluation to encompass aspects such as environmental stewardship, occupational health and safety, labor and human rights, and ethical considerations relevant to sustainable development. The long-term aspiration is for suppliers to align with sustainable management principles in tandem with SiRUBA endeavors.
Supplier Evaluation
To ensure that suppliers meet the company’s requirements in terms of delivery quality, quantity, delivery time，and pricing, SiRUBA has devised “Supplier Management Measures” to assess and evaluate the quality and delivery timeliness of both current and potential suppliers. The supplier evaluation team at SiRUBA comprises units such as quality assurance, biotechnology, procurement, and collaborating in its execution. The overall supplier assessment derives from monthly evaluations of quality and delivery, with classifications ranging across four levels: Class A, Class B, Class C, and Class D. As of 2022, the supplier evaluation process has yet to incorporate environmental and social assessments, with plans for their implementation commencing in 2023.
The evaluation results of both new and existing suppliers in 2022 met the company’s requirements, with no significant violations of environmental and social regulations leading to supply termination.
Supplier Risk Management
To prevent suppliers from impacting company production, performance or causing disputes due to major disasters, unannounced closures, or other unforeseen circumstances, SiRUBA has established a risk assessment mechanism to enhance supplier management. SiRUBA conducts annual supplier risk assessments, requiring suppliers to formulate contingency plans and response procedures for various potential natural or human threats, thereby ensuring uninterrupted operation and minimizing potential disruptions. This approach serves to mitigate risks to SiRUBA’s operations and safeguard the rights and interests of stakeholders. Additionally SiRUBA ‘s primary raw mat suppliers are sourced from two or more manufacturers to ensure a stable supply and reduce the risk of material
shortages.
Communication of Supplier
SiRUBA places significant emphasis on maintaining effective communication with suppliers and monitoring their operational status through a range of channels. The establishing an e-Procurement information management system, allows suppliers to gain a clear understanding of SiRUBA’s current and future procurement requirements, facilitating streamlined production planning.
In response to demand, SiRUBA periodically holds supplier meetings, conferences, and participates in industry exhibitions. Additionally, the company dedicates a section on its website to suppliers, promoting strong relationships with them.
Supplier Areat
