Valuing human rights

Valuing human rights

Cathay believes that a corporate culture which emphasizes equality, diversity, and open communication lets employees feel at ease at work, and will further increase our human capital. We have always strictly abided by the local laws and regulations of our business locations worldwide as well as international conventions on human rights. We fully comply with our human rights policy and do not discriminate against race, class, language, ideology, religion, political party, nationality, place of birth, gender, sexual orientation, age, marital status, appearance, facial features, disabilities, or any other factors. Moreover, we invited our suppliers and joint ventures to comply our human rights policy.

Cathay established the Cathay FHC Human Rights Policy in accordance with international frameworks, such as the UN's Universal Declaration of Human Rights, Guiding Principles on Business and Human Rights as well as related regulations of the UN Global Compact and International Labour Organization, to ensure the adequate protection of human rights; the policy is available on our official website. Furthermore, all of our business locations comply with local laws and regulations on human rights protection. Cathay employees are required to abide by the Code of Conduct for Employee, and are prohibited from any form of discrimination or other acts that violate human rights. We periodically provide education and training related to the Code of Conduct for Employee and legal compliance, so that all of our employees understand and abide by the abovementioned policy. In 2018, the coverage and completion of education and training related to the Code of Conduct for Employee both reached 100%.

 

Human Rights - Due Diligence Process & Assessment

Responding to different groups, Cathay established human rights risk due diligence process specifically to periodically evaluate the impact of stakeholders and improve management. In general, there is a Human Rights Risk Assessment and Management Checklist, which takes into consideration international human rights frameworks and the Company's development strategy. In the process, issues are selected after inquiring the opinions of stakeholders including Cathay FHC's CS Committee, employees, external consultants, experts, and scholars, and the risk rating of each issue is periodically examined, so that high risk groups can be identified for management.

 

Grievance/Reporting Mechanism

Cathay FHC has a group-level whistleblower system for crime, corruption, and violations of the law. The system is overseen by an independent director and is planned by the head of compliance at the head office. The system's implementation results are reported to the board of directors and Audit Committee at least once every six months. To prevent sexual harassment and violations of gender equality, we established the "Regulations for Establishing Measures of Prevention, Correction, Complaint and Punishment of Sexual Harassment at Workplace" and the "Sexual Harassment Prevention, Grievance and Investigation Policy". We also set up an e-mail account and established the Sexual Harassment Grievance and Investigation Committee to investigate sexual harassment cases. If a sexual harassment complaint is found to be true, the offender will be brought before the Personnel Evaluation Committee, which will decide on the appropriate disciplinary measures, while the victim will receive counseling and care. Meanwhile, sexual harassment education and training will be intensified for other employees to prevent further cases of sexual harassment from occurring. Finally, employees can report other issues not mentioned above to the human resources department. In 2018, Cathay FHC and its subsidiaries received 0 report regarding violations of the law or corruption, 1 cases of sexual harassment or violations of gender equality, and 3 labor-management disputes.


Cathay FHC views employees as important family and provides employees with complete care with the aim to create a happy workplace. Cathay FHC has been selected as a constituent stock of the Taiwan High Compensation 100 Index every year since 2014, and was selected as one of the Best Companies to Work for in Asia in 2018.

 

 

Compensation & benefits

Long-term performance incentives

Cathay FHC attaches great importance to employees' long-term performance, and established the “Guidelines on Incentives for Senior Employees” to encourage employees who have made long-term contributions to the Company. We issue service bonuses to senior employees, and retain shares for employee subscription during cash capital increases. The number of shares employees are eligible to subscribe for is based on their position, performance over the last three years, and years of service, encouraging employees by allowing them to share our business results. Cathay FHC issued preferred stock A for capital increase by cash in 2016, and reserved 10% of shares for employee subscription. Cathay FHC issued preferred stock B for capital increase by cash in 2018, and also reserved 10% of shares for employee subscription.


Five Star Employee Benefits

Cathay FHC provides comprehensive employee benefits in five aspects, specifically learning and development, family, health and leisure, social activities, and financial and asset management. Descriptions of important benefits and how to apply for them are available in a dedicated section of the employee website, so that employees can easily understand and enjoy the benefits.

Cathay Pregnancy Club

Cathay has observed that whether or not the workplace is friendly to married employees or employees with children greatly affects employees' intention to have children or become reinstated. Cathay Pregnancy Club was established based on the idea to provide warm and substantial care, and create a safe workplace environment where employees enjoy dignity and fulfillment. Cathay Pregnancy Club is our attempt to provide employees with more comprehensive support, in addition to marriage and childbirth subsidies, so that they can achieve work-life balance.


Cathay’s Exclusive Marriage & Childbearing Supportive Measures for Employees

 

Communication with Employees

Employee Engagement Survey

Cathay FHC conducts employee engagement surveys on an annual basis with the goal to reach 4 points (5 points in total) in terms of the three-year average satisfaction score. Action plans are formulated based on survey results to create a better working environment. The average score between 2016 and 2018 is 4.14 so our goal is accomplished. The satisfaction survey comprises the following aspects: corporate sustainability, engagement, employee happiness, leadership and management, work commitment, and overall satisfaction. The 2018 survey was administered at Cathay FHC and all of its subsidiaries (100% coverage), and the Group's overall response rate reached 85% with overall employee satisfaction reaching 4.14 points. There was no significant difference between genders in any of the aspects.

 

Employee-employer Communication

Cathay FHC has established a number of employee communication and reporting channels to protect employees' rights and interests, as well as facilitate labor-management communication. Such channels include the employee forum, internal communication network, the chairperson's mailbox, reporting mailbox, newsletter for sharing business information, the Cathay Financial Monthly, and Cathay FHC town hall meetings. Cathay FHC and its subsidiaries implement employee-employer communication in accordance with the“Guidelines for Implementing Employee-Employer Communication.” Both sides elect representatives to report on, fully discuss, and propose resolutions to major employee-employer issues, which are carried out accordingly. A total of 25 employee-employer meetings were held in 2018.


Occupational Safety and Health

Health risk management

Cathay has an employee health risk management process in place to ensure the health of our employees. The results of employee health exams are periodically analyzed and classified for health risk management. We compiled an employee health risk map on this basis and also organized a series of healthy promotion plans to raise employees’ health awareness. Employees are now more willing than ever to exercise as they participate in our weight loss contest, hiking and power walking, or health management seminars.

 

 

Cathay Weight Loss Contest

Through health risk analysis, Cathay discovered that "obesity" is a common health risk of employees, so we began organizing the Weight Loss Contest which provides employees with rewards and exercise as well as health courses so that they can lose weight healthily. We combined the contest with charity and donated NT$100 for every 1 kg of weight lost by employees. The funds were used to build solar panels and the income from selling electricity generated by the solar panels will be donated to charity organizations. Using the funds accumulated from weight lost by employees, the installation of solar panels in Pingtung was completed in 2018. These solar panels have an installed capacity of 99.6 kW and will generate approximately 115,000 kWh of electricity annually for 20 years. .Revenue from sales of green electricity will support NGOs that serve the elderly.

 

   

 

Cathay Mental Health Project

To care for the mental health of our employees, Cathay implements the Mental Health Project, administering a mental health questionnaire to measure the stress index of employees. The group response rate of the mental health questionnaire was 43% in 2018. We organized a series of stress relief courses, such as essential oils massage, preserved flowers class and seminar, based on analysis results.

Furthermore, we began implementing the Employee Assistance Program (EAP) in 2017. The EAP provides employees with a comprehensive support system by offering professional consultation services that address a variety of needs around the clock. Employees' stress can be effectively alleviated as they seek advice on marriage, family, relationship with their children, and finances. The scope of the EAP has covered CUB, Cathay Life, and Cathay FHC until 2019.

 

Occupational safety management

To ensure workplace safety, Cathay established the Safety and Health Work Guidelines, Occupational Safety and Health Management Plan, and Occupational Safety and Health Management Guidelines. The implementation progress of related strategies and plans is periodically reviewed at liaison meetings of the group-level Occupational Safety Task Force. Responsible departments periodically give occupational accident statistical analysis reports during quarterly meetings of the Occupational Safety Committee at each subsidiary. When an occupational accident occurs, a physician examines the condition of injuries suffered by employees, the occupational safety supervisor collects information on the needs of employees involved in the occupational accident and reports it to the Occupational Safety Department, and then the employees’ respective departments show care and provide necessary assistance. If an employee takes a leave of absence due to an occupational accident, a nurse will continue to follow up on the employee’s condition and evaluate if the employee is suitable for reinstatement. The case is closed once the employee is reinstated. The Group furthermore established the following measures to create a safe working environment. Moreover, Cathay Life obtained the ISO45001 occupational safety and health management certification and Taiwan Occupational Safety and Health Management System certification in 2019.

 

 

  • Health, Safety & Well-being Measures of Cathay FHC and Its Subsidiaries (Detailed)
  • ISO45001 certification and TOSHMS certification
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    Note 1: Disabling injury frequency rate = Number of cases * (10 to the power of 6)/Total working hours (year)

    Note 2: Disabling injury severity rate = Number of days lost * (10 to the power of 6)/Total working hours (year)

    Note 3: 2018 Days of absence = Sick leave + Occupational injury leave;Number of required work days = Total work days (Special leave days included)= (number of employees on 2018/12/31) * (number of work days disclosed by Directorate-General of Personnel Administration, Executive Yuan, Taiwan).

    Note4: Insurance sales agent is excluded from turnover rate calculations in the table above due to their special characteristics. If they are included, the total occupational injuries is 96, the total occupational deaths is 0, the disabling injury frequency rate is 1.05, the disabling injury severity rate is 23.53, the total days of absence is 192,881 and the absence rate is 1.69%.

    Note 5: For Employee Injury Rate 2018, the total number of occupational injury leave was 10795.04 (hrs); the total number of employee was 18,588 and the rate was 0.0000029 per 200,000 man-hours. Insurance sales agent is excluded from the calculations due to their special characteristics. If they are included, the total number of occupational injury leave were 71323.04 (hrs); the total number of employee was 45,961 and the rate was 0.0000078 per 200,000 man-hours.


Innovation and Diversity

Gender Equality

Women Empowerment is one of Cathay’s four focus areas for achieving sustainability. We strive to provide equal opportunity and to level the playing field to bring out the full potential of our female employees. During the 2018 cross-company corporate sustainability committee meeting, which was attended by an independent director, the president of each company, and numerous executive vice presidents, we invited Wei-Shien Chang, co-founder of Womany, to give a speech on Women Empowerment. During the event, numerous senior executives and the independent director responded to the UN's #HeForShe initiative, advocating that “Gender equality is not just a women's issue; it's a human rights issue that benefits us all”. Moreover, we decided to go beyond what the law requires by providing female employees with more paid miscarriage leave, and giving male employees more days of paternity leave in 2018.

 

 

 

Diversified Workplace

At present, Cathay has 223 employees of indigenous descent. We offer “indigenous holiday leave” to employees of indigenous descent, who may choose to take one day off during an indigenous festival. For the disabled employees, our office buildings have barrier-free facilities to help them adjusting to the working environment. Moreover, CUB co-organized 22 recruitment orientations and group interviews for people with disabilities together with charity foundations and schools in 2018 and we hiring excessively disabled employees. Besides, Cathay encourages employees to participate in public welfare activities that serve new immigrants, indigenous peoples, and people with disabilities. We also advocate for diversity and inclusion through e-newsletters sent to employees for the establishment of equal and friendly workplace.

 

 

 

Southeast Asia Talent Program

Corresponding to Cathay’s expanding into other Asian markets, we aim to fulfill talent internationalization and help international talent assimilate into local society. We hope that this will expand our talent pool and assist the operation and development of overseas businesses. Cathay FHC offers employees the opportunity to rotate to overseas positions through the Group/Global Management Associate (GMA) Program. Efforts made by our two largest subsidies to recruit and develop Southeast Asian talent include the VMMA Vietnam Office Reserve Talent Program of Cathay Life and the Southeast Asia Financial Market Pilot Program of CUB. As of 2018, we have hired employees from a total of 14 different countries, and we will continue to implement the strategy of developing overseas markets using local talent with the goal of recruiting 85% of all overseas employees from local communities.

 

Cathay Life's VMMA Vietnam Office Reserve Talent Program and Vietnamese Actuarial MA Program

The VMMA Vietnam Office Reserve Talent Program recruits Vietnamese students who graduate in Taiwan, provides them with practical training in Taiwan and Vietnam, and hires them as sales supervisors in Vietnam. Through the training program, 12 graduates were selected to join the ranks of MAs; 3 have completed training and were appointed as sales supervisors in Vietnam as of the end of 2018.

The Vietnamese Actuarial MA Program was implemented in 2018 to help subsidiaries in Vietnam cultivate actuarial talent. Cathay Life recruited local students from Vietnam to study at Feng Chia University's Graduate Institute of Statistics and Actuarial Science, and also serve internships at the actuarial department of Cathay Life. Cathay Life also signed an MOU with Takming University of Science and Technology in 2018, and offered suggestions for courses and internship opportunities for students in the Vietnam program of the university's Department of Insurance & Financial Management with the aim to train more insurance professionals for the Vietnamese market.

 

CUB's Southeast Asia Financial Market Pilot Program

CUB is actively expanding its sources of overseas talent to meet the human resource demands of its branches in Southeast Asia and to develop overseas junior management talent. CUB thus implemented the Southeast Asia Financial Market Pilot Program to provide training to outstanding Southeast Asian financial experts who are familiar with local markets. The program makes CUB the first financial institution in Taiwan to coordinate with the government’s New Southbound Policy, integrating industry, government, and academic resources for the development of financial experts.

Through the program, students in Southeast Asia will be recruited to study in Taiwan. Solutions for pain points in the five aspects that students are most concerned about, specifically living, language, internship, further education, and employment have also been devised, including subsidizing tuition and miscellaneous fees, providing a living allowance, advanced placement language courses, internships in enterprises, and employment opportunities when students return to their native countries. Program participants will become seeds sowed by Cathay overseas and become a stable talent pool fueling the company's future development in Southeast Asia. In 2018, the program was recognized with the Best Talent Development Award of the Banking and Finance Best Practice Awards, which is known as the Oscars of the financial sector in Taiwan.

 


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