Sustainability management in social dimensions

Social Policy and Practice

The Company focuses on doing business with respect for human rights and responsibility to stakeholders by adhering to the following practices:

1. Respect for Human Rights

The Company has established a code of conduct in accordance with the model of the Mitsubishi Electric Group by fostering respect for human rights without discrimination as to nationality, race, religion, social status or disability of its employees. It makes sure that no harassment of human right or discriminative action takes place while upholding a fair practice and ensuring job security for employees at all levels. Job opportunities are provided for non-Thai labor and the disabled as part of its workforce by having them tasked with duties of their capability based on the labor structure under Thai labor laws. Proper welfare and benefits are made available under the same standards. Moreover, the Company arranges meetings with the labor union on a monthly basis, with a common goal to improve the quality of working life and build up good labor relations between the Company and the employees. As a testament to its relentless efforts in this issue, the Company has received the Workplace with Outstanding Labor Relations and Welfare Management Award from the Department of Labor Protection and Welfare, the Ministry of Labor, for 14 consecutive years. This award has demonstrated an outcome of the Company’s determination in labor relations management with best practices so clearly, and of which the Company, the labor union, and the employees have been proud.

2.Fair Treatment of Labor

Salary and Welfare

The Company has adjusted its salary structure to be compatible with competition in the labor market and to a rate above the authority’s minimum wage payment as moral support for the employees’ performance of duties. It has engaged an experienced external consultant to conduct a survey of and to give suggestions on pay structure to ensure fair compensation. Performance of employees of all levels evaluated twice a year and the results of which used to determine annual promotion and salary increment.
Moreover, the Company has set up Workplace Welfare Committee following Labor Protection Act, B.E.2541, Section 96, with employee committee members and management representatives appointed to coordinate with Workplace Welfare Committee in determining welfare structure guidelines beneficial to the employees. Such committee will jointly meet to consider rationalizing basic welfare package in each year in line with the rising cost of living as a way to help cut down expenses for the employees. Employees also provided with the cost of living allowance, diligence allowance, and lunch allowance, as well as improvement of welfare canteen by increasing food stalls and food variety to offer more choices for the employees, more coverage of medical expenses, annual health check-up, etc.
To improve employees’ quality of life, the Company offers additional benefits apart from the basic welfare as below.
• Establishing Kang Yong Electric Saving Cooperatives since 2002 to enhance economic and social benefits to members through self-support and support for one another according to the cooperatives principle, comprising lending of loans at lower interest rates than commercial banks, financial assistance for members affected by natural disasters, and occupational training for retired employees.
• Organizing an outdoor market to sell low-priced products to employees.
• Arranging recreational activities for skill development and entertainment purpose, which will have positive effects on their mental and physical wellness, etc.
• Establishing a walled-off area as a lactation corner for employees, who are breastfeeding mothers, a breastfeeding support program provided by the Company since October 2016.
• Establishing a gym in the building (fitness room) since November 2019.
The Company is always aware that employees are a group of people who are the key to moving the organization forward to success and prosperity. As such, a top priority is given to their safety from the moment they leave their residence for the workplace and vice versa, as well as while at work. “Zero Accident” is set as the target for strict implementation in business operation.
1. Occupational Health, Safety and Environment
The Company incorporates occupational health, safety, and environment into the yearly policy and action plan so that the executives, supervisors, and staff at all levels will cooperate in the implementation according to the policy consistently and efficiently. The Occupational Health, Safety and Environment Committee has set up composed of senior executives, supervisors at all levels and the labor union to ensure compliance with ISO 14001 environmental management standards and occupational health, safety and environment rules and regulations, as follows:
- The 5S and Kiken Yoshi Training (KYT) programs are used as a basis for implementing tasks according to the organization structure with the rectification of any risk-prone area that may cause danger, upholding the rules and regulations, and ensure staff wear personal safety equipment that is up to standards in risky area on a strict basis.
- All systems and measures are improved to prevent any danger from the operation of machinery and tools, such as the installation of equipment separating workspace of machinery controller from machinery spot. Staff is supervised and trained about how to use newly procured tools and machines with new technology based on risk assessment to mitigate risks at the average level or higher. Risks at all levels across the organization are contained, and set annual occupational health, safety, and environment objectives to be communicated to concerned staff to perform this task in a bid to develop a knowledge base in operation consistently.
- Safety knowledge and training are made available for all the employees and safety exhibition are regularly organized every year to instill awareness of occupational health, safety, and environment, in both theoretical and practical aspects, in existing and new employees to get ready for actual operation.
- The Company has simulated possible accident risk by setting up an unsafe realization room for production line and office to build awareness of potential danger and underline the degree of workspace inspection by supervisors to ensure safety. Traffic in the Company premises is improved to ensure safety for work operators and visitors, with clear specification of a pedestrian path around the building and a pedestrian crossing.
- Enhance the awareness of safety for all employees, all departments by organizing Safety Talk to share the information that employees can practice. The content consists of rules, regulations, and various safety practices to ensure maximum safety at work.
- The Company is committed to preventing accidents from work. Based on the idea that accidents from work-related can avoid. By encouraging for ongoing safety activities to reduce the statistics of accidents in the workplace to zero. Through the activities in accordance with Occupational Health and Safety plan continuously. As a result, the company received a plaque Zero Accident Campaign 2021 activity from the Ministry of Labor on July 1, 2021, receiving an award Gold level for third consecutive years (with 28,421,454 working hours).
- Enhance the awareness of occupational health for all employees, all departments by organizing Health Talk to maintain employees’ physical, mental health and well-being in society and prevent health deviations caused by work.
Measures to prevent the coronavirus disease (COVID-19)
The Company is prioritizing a health and safety environment of our employees. In response to this situation, the Company executes the following three precautionary measures;
- Caring for employees; the Company implements the social distancing concept by separating the lunch break period, adding partition at the canteen at one time, and increasing the frequency of cleaning various touchpoints, daily temperatures taken with infrared thermometers on the shuttle bus, at the front gate, weekly ATK test for COVID-19 and arrange vaccination for all employees. Besides, the Company give away medical masks and alcohol sanitizer hand spray to employees. Install alcohol gel at various points.
- Caring for operation; All employees are required to wear mask before enter to the workplace and during their works. Using web meeting or other platforms instead of conducting all the activities that bring the employees being together such as meeting, training, and exhibition. Moreover, the Company installed partitions in the working areas, relaxing areas, and smoking areas.
- Caring for visitors; on arrival, the visitors' temperature is checked, and possible exposure to coronavirus history taken, require to wear a mask, wash their hands or use hand sanitizer prior to entering, and practice social distancing
In addition to all mentioned measures, the Company has appointed the coronavirus pandemic (COVID-19) management committee to raise the awareness and prepare for the response, as well as, assess the situation to prevent problems, put in place appropriate preventive and control measures, increase communication channels with employees to receive and send news via the Company’s Line official account so that all employees are able to follow and be aware of the current situation immediately.
2. Safety Outside Office Hours
Individual employees are deemed not only as a driving force for the Company’s business operation to move forward with success, but also as a tower of strength for their family. Therefore, they must be both mentally and physically healthy to be ready for their work, especially for those who work in risk-prone and unsafe areas or even those whose working areas are risk-free. The Company provides welfare and arranges health-concern activities for the employees, such as anti-drug sports competition, don’t drive drunk campaign from the eve of long holidays to enhance social responsibility awareness in order to prevent accidents during employees’ trips back home upcountry and back to work, random drug and alcohol testing on staff shuttle bus drivers, and safety helmet campaign for staff who use motorcycles. Traffic accidents should be reported in order to increase the awareness of traffic accidents and ensure their highest safety.
In addition, emergency report is put in place in case of staff having accident outside office so that first-aid and urgent support can be timely provided.
3. Fair Business Operation
The Company is steadfast in conducting business ethically and transparently based on its management philosophy with awareness of corporate responsibility for the society at large. It encourages the directors, management, and all staff members to perform duty under the code of ethics and in line with the Mitsubishi Electric Group Conduct Guidelines, which the Company first communicated to its employees as work rules in 2007 and has revised from time to time to suit the circumstances, as below:
1. Fair Competition
• The Company adheres to the principle of conducting business in strict conformity with rules and laws governing trade competition and monopolization, both domestically and overseas, as specified in the “Mitsubishi Electric Group Conduct Guidelines”. The Company has put in place “criteria for compliance with trade competition law” for internal implementation regarding “do’s and don’ts” about meetings of trade associations or conferences and transactions with competitors to prevent Cartel grouping under trade competition and anti-monopoly law in its handbook for meetings and transactions with competitors since December 24, 2015. To ensure right understanding and practice according to such criteria, it has continually trained new executives and employees with self-learning system (E-Learning).
• The Company will not consent to, agree to, or exchange information with competitors in a way that could unreasonably restrict competition regarding products, prices, production, salability, sales conditions, bidding, or any other agreements, whether verbal or in writing, or expressed or implied. It will not have communication with competitors in any manner that could reasonably cause unfair competition.
• The Company will not violate any intellectual property rights or any other rights related to the intellectual property of any person by complying with the rules on intellectual property management.
2. Responsibility for Supply Chain
• The Company has systematically, scrupulously and formulated a socially responsible procurement policy, entailing procurement control, supply source assessment, supplier selection etc. In doing so, it adheres to the ethical standards on “discharge of duty with integrity and righteousness while maintaining a cordial relationship with business partners” through mutually supporting cooperation as if being alliances in terms of technology, safety, output expansion, environmental problem reduction, and quality standard upgrade, so that they could move together toward business strength and stability.
3. Innovation and Publicizing of Innovation from CSR Activities
  The Mitsubishi Electric’s ‘Changes for the Better’ slogan, which denotes a strong commitment to relentless development, emerges as the major driver for the Company’s dedication to and concentration on the use of innovation and new technology by embracing social and environmental responsibility and energy conservation in concurrence with continual product quality development and review of manufacturing process for higher efficiency. In 2020, the Company developed innovation for its products and manufacturing process as follows:
Electric Fan
• Developed a new motor with ball-bearings for the wall-type ventilating fans with 8, 10 and 12-inches propeller to increase the efficiency and quality to be more durable.
• Developed a new generation of electric fans 5 models with a new flat, durable plastic grill that spreads the air out to the sides and efficiently sends the wind furtherly far. The new fan received the new EGAT No.5+3-star standard.
• Developed a new cycle fan with 18-inches propeller made from PP-Fiber, a new material which is more durable.
Refrigerator
• Developed and produced the 2-door top freezer refrigerator with a capacity of 180L-220L with Compressor Cover for further strength and safety, and reduce any harmful risks to the compressor.
Water pump
  The Water pump products have improved the reduction of energy consumption in the production line by exploring old machines with high energy consumption and replacing them with new ones that use lower energy to reduce energy consumption and increase production potential. It also has activities to minimize the use of raw materials in the production process and continuously reuse the used raw materials based on the use of natural resources sustainably.
Production process
  Installed a tracking system to monitor the use of air compressors in each machine and also fixed air leak points in the compressed air system in the production process to save the electricity expenses.
4. Responsibility for Consumers
The Company adopts a policy on customer satisfaction management which consists of:
Q: Quality : Manufacture products of high quality
D: Delivery : Ensure product delivery of the type, in the quantity and by the time desired by customers
C: Cost : Offer products at a reasonable cost
Health and safety for customers
  The Company has conducted research and development and produced safe and quality products, with management systems that meet standard specifications relating to quality, safety, and environment. Its products are suitable for use and do not harm life and properties of consumers. Product warranty and after-sale services are also made available under the conditions set forth.
  As customers and repair technicians in general sometimes use cheap replacement spare parts, which cause damage to the Company’s products, the Company has leveled up its product safety by using non-flammable steel in the product structure to safeguard against spare parts that may spark a fire.
Procedures
 1. Assess inflammable parts, which result from the use of components with wrong specifications and not up to safety standards.
 2. Add steel sheet to cover inflammable parts to prevent damage to the products.
 3. Attach warning label on the products and in the product manual, so that consumers will be aware and careful when having the products repaired by general technicians.
Display of product and service labels
  The Company gives priority to providing customers with accurate information on the products. It thus attaches labels giving instructions for use, caution, and other information that are consistent with legal provisions on all of its products for maximum safety and benefits of the consumers. For example, as its refrigerator uses such refrigerant as R600a, which helps reduce global warming, but there is a caution that it is a flammable substance, the Company requires having a label “Caution” attached to the refrigerator, with the description thereon to see. It aims to ensure consumers are careful and concerned about any possible harmful effect when they have the products repaired or discharged if no longer in use. Therefore, only the “Instructions of Use” is not enough for the safe use of products.
Marketing communication and customers’ privacy
• Make available to customers together with the product manual giving instructions of product use, care, and discharge when no longer in use, while information on product specifications provided in the catalog distributed to customers through dealers and display booths.
• Deal with customers in a polite, efficient and trustworthy manner.
• Conduct investigation right after receiving customers’ complaints on product quality and safety, and track the results after remedial and preventive measures have been taken.
• Keep customers’ information confidential and use no customers’ information wrongfully and for personal or related persons’ benefits.
    On the side of energy saving, the Company is firmly determined to be among the leading producers that offer the most energy-efficient products to push for an upgrade of the New No. 5 energy saving with 3 stars standard applicable in the country for the optimum benefit of consumers in the future.

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Last Update

  • 8 May 2023