Human Rights

การดำเนินงานด้านสิทธิมนุษยชน

Long Term Target 2028

The number of reported human rights violations is 0 cases.

Target 2023

The number of reported human rights violations is 0 cases.

Performance 2023

The number of reported human rights violations is 0 cases.

Risk

Violations of labor rights, lack of equitable quality of life, breaches of data privacy, discrimination, freedom of association and collective bargaining, and unfair treatment of employees and stakeholders are human rights issues that impact internal management, employees and stakeholder satisfaction, potentially leading to disputes, complaints, and damage to reputation and brand image if the company lacks appropriate policies, measures, or management practices

Opportunity

If the company establishes policies, practices, and provides channels and measures to prevent human rights violations effectively, it can reduce operational risks and mitigate potential reputation damage arising from human rights violations and related legal breaches

The Company is committed to conducting business with an emphasis on respecting human rights, adhering to the laws of the country we operate in, and implementing the United Nations Guiding Principles on Business and Human Rights. This commitment encompasses the protection of human rights, respect for those rights, and remediation of any adverse impacts resulting from human rights violations (Protect, Respect, Remedy). These principles serve as a guideline for managing human rights risk and establish a uniform standard across the organization, covering all stakeholders, including customers, employees, business partners, and outsources. The Company is dedicated to protecting and respecting human rights, addressing issues such as child labor, forced labor, human trafficking, freedom of association, the right to collective bargaining, equitable compensation, harassment (both sexual and non-sexual), and discrimination based on place of origin, skin color, sex, gender, race, nationality, religion, belief, political opinion, social status or ethnic background, sexual orientation, disability, or any other status unrelated to job performance.

1.Human Rights Policy

Source: https://setsustainability.com/page/business-and-human-rights

The Company has established the Human Right Policy, which is part of the Code of Conduct, that has been approved and reviewed by the Board of Directors. The Policy adheres to the principles from the local laws and adopts the UN Guiding Principles on Business and Human Rights (UNGP), under the 3 principles: Protect, Respect and Remedy. The Policy has its scopes over employees, customers, suppliers, or business partners and covers the following topics.

Customers

Integrate environment, social and governance (ESG) elements in business operation, in process of issuing and developing financial products and services. The Company must not be involved in human rights violations.
Refrain from discriminatory practices based on similarity or difference and committed to developing products or services so as to build confidence among customers and provide convenient and equal access to our services.
Adhere to the fair market conduct framework throughout the entire processes from presale, during sale, and after sale in order to ensure that customers can obtain complete and accurate financial products and services information, which are presented with sale or service offering in a fair and accurate manner.
Establish policy and regulation regarding customer data privacy protection and guidelines on personal data processing to ensure highest security for customers obtaining services from the Company

Employees

Ensure fair and equitable treatment of employees, prohibiting any forms of infringement, harassment, and discriminatory practices based on similarities or differences. Additionally, emphasize the significance of diversity within the Company.
Refrain from using child and illegal labor and uphold respect for individual rights and personal data protection.
Provide safe and hygienic workplace environment.

Suppliers and business partners

Establish a transparent process for selecting suppliers or outsources in accordance with business partners policy or procurement regulations.
Set parameters for self-assessment by suppliers or outsources as shown in the supplier code of conduct form, which encompasses human rights, environment, and occupational health and safety.
Uphold respect for human rights of outsources as required by law.
Encourage suppliers or outsources to develop or enhance work-related skills for better efficiency through training programs or sharing of opinions with the Company.
Regarding engagements with other stakeholders in this matter, the Company complies with the legal stipulations or contractual agreements set forth between the involve parties.

2.Human Rights Risk Assessment Process

Suppliers

As part of new supplier selection process, the Company ensures that suppliers conduct human rights due diligence through the Supplier Code of Conduct assessment. This includes random reviews of supplier services by conducting on-site evaluations or inquiries in accordance with the Supplier Code of Conduct assessment. The Supplier Code of Conduct reflects the Company’s commitment to ethical practices and human rights standards.

In 2023

The Company performed site visit of

16 suppliers

The inspection results:

No human rights violations

of suppliers.

In 2022, the Company conducted a risk assessment in the work processes of the Human Resources business unit, Procurement unit and Compliance business unit. This covers risks arising from unfair procurement, violation of compliance with laws and regulations, improper hiring process, unfair compensation, or treatment of employees. These incidents can lead to lawsuits, resignation or strikes. It also includes damage caused by imposing insufficient operational safety measures and control of the operating environment, which can affect employee health due to diseases or injuries caused by operational accidents.

3.Human Rights Guidelines

Fair Labor Practice

The Company is committed to treating all job applicants and employees equally and fairly, in line with human rights principles, encompassing compliance with labor laws, non-discrimination, inclusion, and respect for diversity as outlined in the Code of Conduct. This commitment extends to all aspects of employment, regardless of an individual’s education, nationality, ethnicity, skin color, religion, sex, gender, or physical disabilities, including recruitment and hiring processes, creating opportunities for a diverse workforce, organizational structure, work procedures, performance evaluations, compensation, employee benefits, and termination processes.

Furthermore, the Company prohibits management, managers, supervisors, or inspectors from committing sexual harassment. Harassment based on gender and age, whether it involves females, males, or children, as well as sexual harassment between employees at the same or different levels, is considered a disciplinary offense. In case of a violation against rules and regulations related to work, one or several penalties will be imposed according to the severity of the offence. There are steps as follows: verbal warning, written warning, suspension without pay, termination of employment with severance pay and termination of employment without severance pay.

Potential development and advancement promotion amongst employees

The Company incorporates human rights principles as a framework in its planning and management practices to provide training, knowledge development, and career advancement opportunities for all employees, regardless of gender, in order to ensure equal opportunities. Human rights issues are integrated into the learning materials and assessments in the corporate governance policy and code of conduct training courses to raise awareness among employees and prevent discriminatory or unethical practices in the workplace that would violate human rights principles. Additionally, other support measures are in place, such as the HR Clinic, to provide a platform for feedback and suggestions, offer counseling to employees, review welfare benefits, regulations and various policies to stay abreast of changes in labor-related laws.

Fair Treatment to Customers

The Company adheres to a framework for managing customer service in a fair manner (Market Conduct) and providing credit responsibly and fairly (Responsible Lending). This encompasses various processes from pre-sales, during sales, post-sales services, as well as providing assistance to customers facing difficulties in debt repayment. The aim is to ensure that customers receive comprehensive, accurate information about financial products and services and are offered or serviced in a fair and ethical manner without discrimination. The Company listens to and addresses problems arising from service usage, develops products or services, promotes the provision of information on terms and warnings that customers should be aware of to nudge behavior and support financial discipline. Customers should be able to manage their debts beneficially for themselves to build confidence, security, and convenience in using services equally.

(Please refer to additional information in https://www.ktc.co.th/en/sustainability- development/corporate-governance under “Code of Conduct” topic)

Supplier Code of Conduct

The Company pays attention to the selection process and review of supplier selection with transparency, in accordance with the guidelines outlined in the Business Partners Policy or procurement regulations. Factors have been established for suppliers to self-assess. This includes reviewing their establishments and gathering information. These measures ensure that the Company’s suppliers comply with the guidelines set forth in the Supplier Code of Conduct, which covers human rights, occupational health and safety, environmental standards, etc. Additionally, contractual practices are in place to respect the human rights of suppliers, in accordance with the law. The Company also supports suppliers in developing or enhancing their skills through training programs or exchanging ideas with the Company.

(Please refer to additional information under the “Supply Chain Management.” Topic)

4. Procedures in Case of Violations or Non-Compliance with Human Rights

The Company provides channels for stakeholders to notify in case of human rights violations, including scrutiny, punishment, prevention, mitigation, and remedy procedures, all of which are defined in the Code of Conduct or Human Resources Regulations. The scrutiny is done on a case-by-case basis. The Company has plans to alleviate or mitigate negative impacts on human rights if there is a risk that may violate human rights practices. The Company runs different activities from upstream to downstream with transparency, fairness, and clear working processes to reduce human rights violation risks.

More details on Procedures in case of violations or non-compliance with human rights can be found under the “Anti-Corruption and Bribery and Actions in case of violation or non-compliance with code of conduct” topic.

Reportedhuman rights violations

By providing a policy, regulations and having appropriate internal control and risk management system, in 2023, the Company was not informed and did not have issues under scrutiny regarding human rights violations from employees, suppliers or other stakeholders.

Human Rights