Arcadyan is committed to fostering a workplace that respects human rights and safeguards employees’ fundamental rights, and regards human rights management as a cornerstone of sustainable corporate governance. The Company follows international human rights and labor standards, including the Universal Declaration of Human Rights (UDHR), the United Nations Global Compact (UNGC), the United Nations Guiding Principles on Business and Human Rights (UNGPs), the ILO Declaration on Fundamental Principles and Rights at Work, the OECD Guidelines for Multinational Enterprises, the Responsible Business Alliance (RBA) Code of Conduct, and the SA8000 Social Accountability Standard. In compliance with applicable laws and regulations in its operating locations, Arcadyan has established and published the Human Rights Policy, which was reviewed and approved by the Board of Directors and serves as the highest guiding principle for the Company’s human rights management and practices.
Arcadyan Human Rights Policy
- Respect for Human Rights:
We integrate respect for economic, social, cultural, and civil rights into our operations, eliminating any form of unlawful discrimination and ensuring equal employment opportunities. - Health and Safety:
We provide a safe, healthy, and harassment-free workplace, ensuring the physical and mental well-being of employees. - Prohibition of Child Labor and Forced Labor:
We strictly prohibit the employment of child labor, any form of forced labor, and human trafficking, ensuring all employees are voluntarily employed without exploitation or restrictions on freedom of movement. - Fair Compensation and Working Hours:：
We comply with wage and working hour regulations, ensuring timely payment of fair and adequate living wages while clearly listing any deductions. - Sustainable Supply Chain:
We prohibit suppliers from using raw materials sourced from conflict minerals and ensure the supply chain meets human rights and environmental protection standards. - Open Communication and Management:
We foster a culture of open communication and implement transparent management, encouraging employees to express their opinions freely. - Protection of Vulnerable Groups:
We safeguard the labor rights of vulnerable groups and ensure equal opportunities for all. - Privacy Protection:
We respect and protect employees' personal information, ensuring that data collection and usage comply with relevant regulations. - Continuous Improvement and Supervision:
We regularly review the human rights policy and its implementation effectiveness, optimizing management measures to ensure ongoing enhancement of human rights protection.
Management Indicator
- Zero occupational injuries in factory areas per year
- Zero cases of child labor employment per year
- Zero cases of forced labor complaints per year
- Zero cases of human trafficking per year
- 100% human rights awareness training for new employees annually
- Employee salaries comply with fairness and reasonability principles, with regular reviews of the compensation system
- Zero cases of employee discrimination complaints per year
- Zero violations of privacy protection laws per year
Commitment to Upholding Labor Rights
Arcadyan is committed to respecting human rights and safeguarding the fundamental labor rights of all employees. In accordance with international labor standards and the Human Rights Policy, the Company has established comprehensive labor management systems to foster a fair, safe, and respectful workplace. Arcadyan recognizes that protecting labor rights is not only a fundamental aspect of human rights, but also a key foundation for sustainable business operations. The Company’s labor rights commitments include:
Human Rights Management
In accordance with the United Nations Guiding Principles on Business and Human Rights (UNGPs) and other internationally recognized human rights standards, Arcadyan has established a systematic Human Rights Due Diligence (HRDD) process and conducts annual human rights risk assessments to identify, prevent, mitigate, and manage potential human rights risks across its operations and supply chain. In 2025, the assessment covered employees at Arcadyan Headquarters and the Vietnam Manufacturing Center, achieving an employee coverage rate of 95.8%, and was extended to 17 tier-one suppliers. By reviewing RBA and JAC audit results from the past three years and incorporating human rights issues and emerging risk trends highlighted by international organizations, Arcadyan systematically identifies potential human rights risks as the basis for ongoing management and improvement efforts.
Human Rights Due Diligence Process
Arcadyan’s Human Rights Due Diligence (HRDD) process consists of four key steps: identifying human rights issues, conducting risk assessments, implementing mitigation and remediation measures, and driving continual improvement and disclosure. The Company evaluates each issue based on its likelihood and potential impact, classifies risks into low-, medium-, and high-risk categories, and establishes a risk matrix and materiality ranking to support subsequent management actions and improvement initiatives.
Human Rights Risk Issues
Through a systematic identification process, Arcadyan identified 13 human rights–related issues, including forced labor, human trafficking, child labor, freedom of association, right to collective bargaining, discrimination, reasonable working hours and compensation, humane treatment, labor rights and awareness training, grievance mechanisms, supply chain and outsourced labor rights, occupational health and safety, and social insurance coverage. The Company further assesses and prioritizes these issues based on their potential impact on employees and suppliers, enabling more targeted and effective human rights risk management.
Human Rights Due Diligence Methodology
Arcadyan systematically identifies human rights risks across its operations and supply chain by referencing international human rights standards as well as audit findings from the Responsible Business Alliance (RBA) and the Joint Alliance for CSR (JAC). The Company evaluates each issue based on its likelihood and potential impact, establishes a risk matrix and materiality ranking, and uses the results as the basis for subsequent management actions and improvement measures.
Risk Assessment Criteria
Arcadyan Group Human Rights Risk Matrix
Supply Chain Human Rights Risk Matrix
Human Rights Risk Assessment Results
Based on the results of the 2025 human rights risk assessment, Arcadyan has established corresponding mitigation and remediation measures for both employees and suppliers. For employee-related risks, the Company focuses on occupational health and safety and reasonable working hours and compensation. For suppliers, key areas of concern include reasonable working hours and compensation, occupational health and safety, and social insurance coverage. Through systematic management and ongoing monitoring, Arcadyan continues to mitigate human rights risks across its supply chain.
Human Rights Management Systems and Practices
Arcadyan is committed to respecting and protecting human rights by adhering to internationally recognized human rights standards and applicable regulations in the regions where it operates. The Company fosters a respectful, equitable, and inclusive workplace and integrates key human rights issues into its risk management and governance framework through policies, training programs, and grievance mechanisms. Key human rights management practices and related initiatives are outlined below:
Prohibition of Child Labor
Arcadyan strictly complies with minimum working age requirements in all operating locations and prohibits the employment of child labor under the age of 16. The Company also prohibits employees aged 16 to under 18 from performing hazardous or harmful work. Arcadyan Headquarters has established the Child Labor Prohibition and Young Worker Management Procedure and incorporates related requirements into its Human Rights Policy, Recruitment and Employment Management Regulations, and Child, Juvenile, and Student Worker Control Procedure.
During recruitment and onboarding, Arcadyan verifies applicants’ ages through résumé screening, interviews, and identity document reviews to ensure compliance with legal requirements. In the event of any inadvertent child labor employment, the Company will immediately implement remediation measures, including removing the child from the workplace, arranging health examinations, notifying parents or guardians, and covering necessary medical and transportation expenses to protect the child’s rights and well-being. In 2025, no incidents of child labor were identified across any of Arcadyan’s operating locations.
Forced Labor and Human Trafficking Prevention
Arcadyan adheres to international human rights standards, applicable labor regulations in all operating locations, and the principles of the UK Modern Slavery Act 2015, and strictly prohibits all forms of forced labor and human trafficking. The Company safeguards employees’ rights to freely choose employment, resign voluntarily, work reasonable overtime, and enjoy freedom of movement. Arcadyan prohibits bonded labor, debt bondage, retention of personal identification documents, and any other practices that restrict personal freedom, ensuring that all work is performed on a voluntary basis.
To ensure effective implementation, Arcadyan regularly reviews human resource management practices and regulatory compliance across its operating sites through internal audits and monitoring mechanisms. In 2025, no incidents of forced labor or human trafficking were identified at any of Arcadyan’s global operations.
Advancing Gender Equality and an Inclusive Workplace
Arcadyan is committed to fostering a diverse, inclusive, and equitable workplace that respects individual differences and employee well-being. The Company promotes gender equality and strives to provide a discrimination-free and accessible work environment. To support diversity and inclusion, Arcadyan Headquarters has established all-gender restrooms, providing a safe and comfortable space for employees of different gender identities as well as individuals with accessibility needs.
As part of its talent development strategy, Arcadyan promotes equal opportunities and actively works to reduce gender gaps in the technology industry. During campus recruitment activities, female managers are invited to share their career experiences and professional development journeys, encouraging more women with science, technology, engineering, and mathematics (STEM) backgrounds to pursue careers in the technology sector.
Arcadyan also supports male employees in participating in parenting and family caregiving responsibilities, helping to challenge traditional gender stereotypes and promote greater workplace equality. The Company is committed to ensuring that all employees can develop their potential and advance their careers without limitations based on gender.
Freedom of Association and Collective Bargaining
Arcadyan respects and safeguards employees’ rights to freedom of association and collective bargaining in accordance with applicable laws and regulations. The Company provides open, transparent, and inclusive communication channels to promote constructive labor-management dialogue and cooperation. Employees at all operating locations may participate in workplace discussions and express their views through formal mechanisms such as labor unions, employee representatives, or labor-management meetings, as permitted by local laws.
At the Vietnam Manufacturing Center, a labor union has been established in accordance with local regulations. In April 2023, the union’s executive committee and Company management signed a Collective Labor Agreement covering wages, bonuses, annual salary adjustments, overtime compensation, occupational health and safety, health examinations, social insurance, leave arrangements, and labor dispute resolution. The agreement serves as an important framework for protecting employee rights and supporting labor-management consultation.
Fair Disciplinary Practices and Employee Rights Protection
To ensure fair management and protect employee dignity, Arcadyan prohibits all forms of corporal punishment, mental abuse, humiliating treatment, and inappropriate disciplinary actions. Disciplinary rules are clearly defined in the Work Rules, and all disciplinary measures are administered in accordance with applicable laws to ensure fairness, consistency, and due process. Employees have the right to express their opinions and file grievances through established complaint mechanisms, safeguarding their legitimate rights and preventing inappropriate disciplinary actions from adversely affecting employee interests.
Anti-Discrimination, Anti-Harassment, and Grievance Mechanisms
Arcadyan is committed to fair, equitable, and equal employment practices and strictly prohibits all forms of discrimination, harassment, and inappropriate treatment. These principles are integrated into human resource processes, including recruitment, compensation, benefits, training, promotion, termination, and retirement, to ensure that employees and non-employee workers are treated with dignity and respect regardless of nationality, race, gender, age, religion, disability, marital status, or other personal characteristics. To support these commitments, Arcadyan conducts regular training on anti-discrimination and anti-harassment topics and has established the Workplace Sexual Harassment Prevention, Complaint, and Disciplinary Measures. The Company adopts a zero-tolerance approach toward sexual harassment, bullying, threats, and other behaviors that violate personal dignity. Arcadyan also provides multiple grievance channels for employees and external stakeholders to raise concerns related to human rights, labor conditions, business ethics, environmental issues, and workplace misconduct. All cases are investigated, handled, and tracked in accordance with established procedures to ensure fair resolution and protect complainants from retaliation or adverse treatment.
Grievance Handling Process
Arcadyan has established grievance, complaint, and dispute resolution mechanisms that provide employees, customers, suppliers, and other stakeholders with channels to raise concerns and submit complaints. Dedicated units are responsible for investigating, handling, and tracking cases in accordance with established procedures to ensure fair responses and appropriate resolution. For serious cases such as sexual harassment, the Company not only takes disciplinary action in accordance with applicable laws and regulations, but also provides necessary psychological, medical, and legal assistance to protect the rights, well-being, and safety of affected individuals.
In 2025, Arcadyan received no formal complaints related to corruption, discrimination, harassment, human rights violations, or other workplace misconduct, and no complaints were filed by external stakeholders. The Vietnam Manufacturing Center received seven employee suggestions through various communication channels, primarily related to workplace environment and facility improvements. All cases were addressed and closed within the designated timeframe.
Migrant Worker No Recruitment Fee Commitment
In 2025, Arcadyan Headquarters and its overseas manufacturing sites did not employ any migrant workers. Should migrant workers be employed in the future, Arcadyan will fully implement a “No Recruitment Fee” policy, under which the Company will bear all recruitment and employment-related costs. Arcadyan remains committed to protecting migrant workers’ rights and providing a fair, respectful, and inclusive working environment.
Working Hours and Overtime Management
Arcadyan values employee well-being and labor rights. All operating sites comply with local regulations governing working hours, rest periods, and overtime management, supported by comprehensive attendance recording and monitoring mechanisms to ensure employees receive adequate rest and to reduce the risk of excessive working hours. Through ongoing internal audits and management improvements, Arcadyan maintains a lawful, fair, and healthy working environment.