Human Rights Due Diligence Process
To conduct inclusive due diligence on human rights, we take all stakeholders into account including those vulnerable groups such as women workers, child labor, migrant workers, minors, disabled people and daily wage workers. The due diligence covers human rights violations as stipulated in domestic laws and the UDHR that are related to both our own undertakings and those of our suppliers and customers. In cases where existing measures are found inadequate to manage risk within acceptable levels, we will consider issuing additional measures or elevate the intensity of current ones as deemed appropriate. We have established appropriate human rights risk assessment measures and require regular monitoring and review of these, while at the same time providing channels for all stakeholders to file complaints related to human rights should they wish to do so. In cases where a violation of human rights is investigated and verified and actual damages are incurred to stakeholders, we shall make proper remedies to the affected people.
We place high priority on strictly treating employees according to labor law and internal rules and regulations including those relating to employment, work, compensation, welfare, safety, occupational health and work environment, employees’ rights to organize and bargain collectively as well as other basic rights. If we are obliged to terminate employees for reasons other than their wrongdoing or retirement, we will follow the rules regarding the termination of employment and will pay severance pay in accordance with labor laws and additional family allowances as specified in the Bank’s regulations.
Fair and equitable employment and treatment of employees without discrimination against gender, race, religion, education or skin color are adopted by the Bank. We do not tolerate verbal, physical or sexual harassment which can lead to psychological damage. We also recognize and promote gender equality and do not tolerate gender discrimination in any form of employment or recruitment, nor in the workplace, and provide opportunities for employees’ skill development and career advancement.
We treat employees fairly and equally and do not tolerate any form of harassment, sexual or any other kind, so that employees maintain good physical and mental health as well as a good morale to work and develop themselves to their full potential. We provide channels for complaints related to work conditions, unfair discrimination at work and other actions that breach work ethics, including sexual harassment and other kinds of harassment. Employees can file complaints in writing through the Employee Relations Unit under the Human Resources Department who will further submit the complaint to a committee assigned to investigate complaints to decide whether the alleged wrongdoing has indeed occurred. After that the case will be referred to the Audit and Control Division to consider appropriate action and punishment. Punishment of wrongdoers will be based on the severity of the case and ranges from verbal warnings and pay cuts to termination of employment and legal action. We ensure that all parties are treated fairly during the process and affected persons are remedied properly and fairly. In cases where the related parties disagree with the punishment, they can petition the Disciplinary and Petition Committee to make a final decision.
Supply Chain Management
To manage human rights risks within our supply chain, we have issued the Code of Conduct for Suppliers which we expect all suppliers to conform to. This code of conduct covers various human rights issues including respect for labor rights, community rights, personal data rights and intellectual property rights. We consistently monitor suppliers to ensure compliance with the code of conduct and are prompt to provide them advice so that they can strictly follow the suppliers’ code of conduct. The respect for human rights is one of the topics that we annually use in our assessment of suppliers with regard to their ESG practices. The suppliers must meet the criteria we set before they are allowed to participate in our procurement and bidding processes. Moreover, we conduct ESG risk assessment (including human rights) for critical suppliers to identify significant risks which have not been duly mitigated and will issue appropriate measures to address them.
Lending Process Management
On our lending practices, we observe responsible lending guidelines and do not engage in lending to businesses using child labor or forced labor. In addition, we have established a process to assess ESG risks and impacts, including human rights and labor rights violations, that may result from projects that we consider to finance. In cases where the projects under consideration could potentially cause severe ESG impacts, borrowers must put in place clear and adequate preventive measures and mitigation plans.