• Human Rights Risk： 
  Forced labor can cause employees to suffer physical and mental abuse, resulting in serious physical and mental health problems.
• Talent Risk： 
  Forced labor can lead to a loss of talent, requiring the company to invest more in rehiring and training employees.
• Legal risks： 
  Forced labor is sufficient to expose Acer to legal sanctions, including fines, litigation, and damage to brand reputation.
• Health risks： 
  Forced labor can lead to serious injury or even death, which not only deprives the company of talent, but also causes psychological trauma to their family.

Training： 
Conduct workplace misconduct prevention training at the headquarters and actively educate supervisors about the risks of forced labor. Additionally, mandate the PanAsia Pacific, EMEA, and Pan America Regional Operations to enhance the education of new employees.

Communication：

• Improve communication with employees, and ensure that all work is voluntary.
• The RBA Code of Conduct prohibits any form of forced labor in the supply chain, while communicating its importance with suppliers.

System：

• Request all global office locations, including Pan America, EMEA, and PanAsia Pacific operations, to hire temporary workers, dispatch workers, and outsource personnel in accordance with local laws.
• Require compliance with integrity and ethical standards for employee behavior, and conduct regular audits to assess supplier compliance.
• Require supervisors to strictly comply with the working hours regulations of the labor standard laws of each country and strictly enforce the daily clocking system to prevent exceeding the legal working hours.

System Adjustment

• Supply chain regulation: Require suppliers to provide labor conditions that meet standards and conduct regular inspections according to these standards.
• Compliance checks: Conduct regular internal audits to ensure all operations comply with relevant laws and standards, particularly those concerning labor rights regulations.
• Transparency and reporting mechanism: Allow employees to anonymously report any instances of forced labor through a secure whistle-blowing mechanism.

Remediation

• Provide training on labor rights to empower employees to respond to labor violations effectively.

Penalty

• In response to offenders, various disciplinary actions may be taken depending on the severity, including warnings, dismissal, legal prosecution; if it involves the supply chain, non-compliant suppliers or partners may be excluded from the supply chain.

• Speech suppression： 
  Interfering with employee participation in the decisionmaking process in a way that harms the common interests of the company and its employees.
• Reduction of operational transparency： 
  When the freedom of association is restricted, the power of oversight organizations may decrease, and the transparency of their operations may also diminish.
• Disrupting cohesion： 
  When freedom of association is denied, it can prevent the formation of common interests and values among employees.

Training： 
Implementation of human rights protection and education training.

Communication：

• Organize quarterly labor-management meetings to improve communication with employees.
• The union members of the EMEA operations (e.g., France, Germany, Italy, Netherlands, Spain, etc.), and other countries, as well as the PanAsian Pacific operations (China region), hold regular meetings to promptly communicate employee feedback to senior management.

System： 
Conduct global Employee Engagement Surveys at the operations of PanAsia Pacific, Pan America, and EMEA, then analyze the results from multiple perspectives, and take necessary actions to improve (e.g. strengthen employee development through diverse online learning activities)

System Adjustment

• Open communication channels: Utilize open and diverse communication platforms to allow employees to freely share their ideas. This includes labor-management meetings, scheduled meetings with Chairman Jason, and Jason's personal visits to the EMEA and PanAsia Pacific regions to listen to local colleagues' opinions, effectively tracking the status of feedback expression.

Remediation

• Open workspace: Create an open working environment that facilitates easier interaction and idea sharing among employees.

Penalty

• The company will impose appropriate punishment and sanctions on any employee found to engage in actions that violate freedom of association. Depending on the severity of the behavior, disciplinary action, or even termination, may be implemented.

• Decline in job satisfaction： 
  Indulging in workplace discrimination can lead to lower overall satisfaction and morale.
• Decline in productivity： 
  A discriminatory work environment can reduce employee productivity and efficiency.
• Decline in competitiveness： 
  Workplace discrimination leads to a less diverse and inclusive workplace.
• Legal consequences： 
  Discrimination may result in legal litigation and damage to the company's reputation and financial condition.

Training： 
Training and education provision: We prioritize diversity by providing ESG and Business Conduct Standards training to employees at both the headquarters and regional operations. This training enhances their respect and understanding of various cultures and backgrounds. Furthermore, the Pan America operations has enhanced its efforts to address workplace misconduct by organizing Kantola AntiHarassment Training.

Communication： 

• The company's timely and proactive response to discrimination issues demonstrates its serious attitude towards these problems.
• Diversity and inclusivity initiative.
• Listening and responding: Supervisors should be reminded to promote open communication, actively listen to employees' opinions and feedback, and promptly address any potential discrimination issues.

System：

• Respond promptly to any complaints of undue discrimination
• Implementation of Workplace Sexual Harassment Prevention Measures, Complaints, and Disciplinary Actions
• Clarifying Complaints Channels, Operating Procedures and Disciplinary Regulations
• Promoting diversity in recruitment: We take measures to ensure a fair recruitment process and actively seek and attract talent from diverse cultures and backgrounds; a diverse team contributes to the creation of a more creative and flexible work environment.

System Adjustment

• Global employees can use the whistleblower mailbox to anonymously report discriminatory behavior, thereby reducing the concerns and risks that reporters may encounter.
• Implement proactive diversity recruitment measures and track background analysis data of new hires to ensure internal company demographics reflect societal diversity.
• Implement proactive diversity recruitment measures and track background analysis data of new hires to ensure internal company demographics reflect societal diversity.

Remediation

• Offer support to the victims while implementing suitable disciplinary actions to address perpetrators of discrimination.
• Ensure that employees are aware of their ability to seek assistance when needed and provide the necessary support.
• Offer resources, including counseling services and support, to employees who have experienced discrimination.
• Establish a support system: Implement a support system that empowers employees to report instances of discriminatory behavior and ensures that the company takes appropriate action in response to such reports.

Penalty

• Punishments for workplace discrimination violations include disciplinary actions, and in severe cases, termination of employment.

• Risk of violation： 
  Employment of child labor is illegal and the company is subject to legal sanctions.
• Reputational impact： 
  Employing child labor affects the company's reputation, not only through social criticism, but also through the possibility of a general boycott of the product.
• Physical and psychological damage： 
  The risks of employment of child laborers can lead to physical or psychological trauma.
• Risk of legal action： 
  If a child worker has an accident while working, the Company must face litigation and pay a high amount of compensation.

Training： 
Acer's suppliers mainly include classifications such as ODM factories and key components suppliers. The headquarters provides human rights training to suppliers and procurement staff during the annual supplier's conference.

Communication： 
During the supplier's conference, it is important to clearly communicate to the suppliers the prohibition of employing child labor. The communication should emphasize the seriousness of this issue by citing relevant statistical data and case studies. At the same time, introduce international standards prohibiting child labor, such as the United Nations Convention on the Rights of the Child, while also emphasizing the company's integrity and ethical standards for employee behavior, clearly stating the commitment to prohibiting child labor.

System： 
Clearly outline commitments and requirements to prohibit the use of child labor in supplier contracts. It is important that suppliers have a clear understanding of and agree to the company's policies, and explicitly state the consequences of policy violations in contracts. Additionally, on-site visits to suppliers should be carried out to verify their compliance with the company's policies.

System Adjustment

• A periodic on-site inspections: Conducted by the company at irregular intervals, these inspections ensure that suppliers also adhere to the same child labor prohibition policy.
• Implementing supply chain transparency: Require the entire supply chain to enhance transparency, tracking the origins and production processes of products.
• Establishing a reporting mechanism: Through a reporting mechanism (whistleblower mailbox), suppliers, employees, and other relevant individuals can anonymously report any activities involving child labor.

Remediation

• Require suppliers to rigorously review relevant documentation before, during, and after employee onboarding to ensure that the working age complies with local regulations.
• Once discovered, the child laborer must be immediately removed from the job position and returned to their family. Wages must continue to be paid until the child laborer reaches the legal working age. Acer conducts unannounced audits within 6 months to confirm whether the supplier still poses a risk of employing child labor.

Penalty

• License revocation: Suppliers who have repeatedly or severely violated regulations will have their business cooperation qualifications revoked.
• Legal responsibility: Hold non-compliant suppliers accountable for legal responsibilities and proactively report to government authorities.
• Public condemnation: Publicly exposing suppliers who do not comply with regulations, implementing disciplinary measures and condemnation, which can negatively impact their reputation.

• Low employee morale： 
  When employees feel they are not being paid fairly for their work, it can lead to dissatisfaction and decreased motivation.
• Increased turnover： 
  When employees feel they are not being fairly compensated, they may start looking for other job opportunities, resulting in a high turnover rate for the company.
• A culture of distrust： 
  A lack of fair pay creates resentment among employees, which ultimately affects the overall atmosphere and culture of the company.
• Violation of the law： 
  Unequal compensation can lead to legal litigation, which in turn can have a negative impact on the company's brand reputation.

Training： 
Equal Opportunity Training: Emphasize the importance of equal rights for all colleagues and help employees understand the significance of pay equality during training on integrity, honesty, and employee behavior standards.

Communication： 
The Standards of Integrity Management & Business Conduct emphasizes fairness, which means treating all employees which means treating all employees with respect and fairness.

System： 

• Regularly evaluate the gender pay gap and actively train women for potential leadership positions.
• Salary is given only with reference to the rank structure and performance appraisal results.

System Adjustment

• Conduct compensation surveys: Conduct regular internal and external compensation surveys, including headquarters, PanAsia Pacific, Pan America, and EME Aregional operations, as well as offices in various countries, to ensure that compensation levels across offices worldwide are marketaligned. This helps ensure that the company avoids creating compensation inequality based on factors such as gender, race, sexual orientation, and others.
• Gender pay equity review: Conduct a comprehensive global statistical analysis of gender pay equity to ensure that male and female employees receive equitable compensation for equivalent positions. If inequality is identified.

Remediation

• Equal opportunity for promotion: Ensure promotion opportunities are fair and free from discrimination related to gender, race, etc. Compensation and promotion opportunities should be determined by ability and performance.
• Promoting Diversity: Continuously maintain a work environment that encourages diversity and inclusivity to reduce the risk of pay inequality

Penalty

• Offer a grievance channel and enforce penalties: Provide a secure, confidential, and nonretaliatory grievance channel for employees to report instances of compensation inequality. Departments or management that are found to have situations of unequal compensation will be subject to penalties and disciplinary actions.