Frontken Corporation Berhad 200401012517 (651020-T) • ANNUAL REPORT 2023 44 RESPONSIBLE SUPPLY CHAIN In 2023, Frontken Group continues to prioritise and support our suppliers’ compliance with local, national, and global guidelines, emphasising our Supplier Code of Conduct framework and supplier management practices. Our business operations rely on various inputs including raw materials, chemicals, consumables, equipment, and supplier services. Recognising the critical importance of reliable supply chains, we are dedicated to proactive collaboration with our suppliers to mitigate supply chain risks, optimise delivery efficiency, reduce costs, and enhance sustainability in their operations. Frontken Group is committed to achieving a sustainable supply chain by ensuring that our business operations and key suppliers adhere to the highest standards of procurement and management practices. We have implemented a Sustainable Procurement and Supplier Management Policy, promoting transparency, fairness, and alignment with industry best practices. Our policy aligns with frameworks such as the RBA Code of Conduct, emphasising quality, integrity, and excellence. Understanding the environmental risks inherent in our value chain, we actively engage with environmentally responsible suppliers and promote sustainable sourcing and procurement practices. We prioritise aspects such as labour practices, human rights, supplier diversity, environmental impact, data security, and material sourcing in our supplier relationships. Through collaborative efforts, we aim to cultivate a sustainable business ecosystem based on mutual success. Frontken Group adopts a risk-based approach to supply chain management, ensuring sustainability and resilience at every stage of supplier engagement. Our Supplier Code of Conduct, aligned with the UN Global Compact Framework and RBA standards, sets stringent standards for ethical business conduct, mitigating social, economic, and environmental risks. We seek partnerships with suppliers who share our values and commitment to ethical business practices. Our Supplier Supply Chain Sustainability Guidelines emphasise compliance with local regulations, fair employment practices, human rights, environmental protection, anti-corruption measures, workplace safety, product quality, and information disclosure. Frontken Group upholds the principles of fairness, dignity, respect, and transparency in all supplier relationships. We prioritise employee welfare, environmental conservation, ethical business conduct, and intellectual property rights protection. Through mutual understanding and adherence to our Supplier Code of Conduct and sustainability guidelines, we foster enduring partnerships built on trust, integrity, and shared values. Frontken Group places significant emphasis on developing relationships with suppliers that align with our values and uphold ethical business practices. We collaborate with our suppliers to ensure a clear understanding of and compliance with the requirements outlined in our Supplier Supply Chain Sustainability Guidelines: (a) Compliance with Laws and Regulations: Suppliers are expected to adhere to all laws and regulations in the countries where we operate, encompassing both business-related and non-business-related transactions. (b) Fair Employment Practices: We support fair employment practices consistent with our commitment to human rights. Suppliers are encouraged to establish strong and direct relationships with their employees, fostering open and honest communication with fairness, dignity, and respect. (c) Respect for Human Rights: Suppliers must uphold human rights without discrimination, harassment, abuse, or any inhumane treatment. This includes a commitment to eliminating child labour and forced labour, managing employees’ work hours, breaks, and holidays responsibly, paying legally mandated minimum wages, and ensuring no inappropriate wage abatement. Additionally, suppliers should respect employees’ rights and pay at least a living wage. SUPPLY CHAIN SUSTAINABILITY REPORT (CONT’D)
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