Human Rights Protection

In order to protect human rights, President Chain Store Corporation has formulated a “Human Rights Policy” with reference to international human rights policies and local labor regulations. The policy covers stakeholders including all employees, affiliated companies, suppliers, contractors and joint ventures. In addition to the commitment to provide a friendly and safe working environment and protect employees’ right to collective bargaining, we also prohibit any illegal discrimination, sexual harassment, unlawful physical and mental abuse in the workplace and intimidation. To this end, we have formulated the “Sexual Harassment Prevention, Complaints and Handling Measures” to actively address such cases, as well as prohibiting forced labor, human trafficking and child labor.

 

There are a total of 7 implementation strategies: providing a friendly and safe work environment and treating employees with dignity; prohibiting any discrimination, sexual harassment, non-sexual harassment, workplace violence and intimidation, and provide a grievance mechanism and properly handle various human rights violations; prohibiting forced labor, human trafficking and child labor; ensuring employment, training and welfare, rewards and evaluations, and promotions are all equal; respecting employees' freedom of association, maintaining unobstructed communication channels with employees, and building a harmonious workplace; promoting physical and mental health and work-life balance of employees; establishing diversified communication channels to ensure stakeholders’rights. (Please refer to President Chain Store Corporation Human Rights Policy）

 

We have zero tolerance for harassment, sexual harassment, workplace violence, discrimination, etc. In the event of such violations, the unit supervisor, human resources department or internal audit office will initiate an investigation according to the case referral process, and the responsible unit will immediately take remedial measures. If the workplace misconduct is verified through investigation, the respondent will, according to the circumstances, be punished, have their duties adjusted, or be subject to referral to judicial authorities.

Human Rights and Labor Audits

To protect employees' labor rights, lower the operating risks of franchise stores, and ensure compliance with labor laws and regulations, President Chain Store Corporation provided training regarding the Labor Standards Act, and regularly conducts human rights and labor audits on its tier-1 suppliers and joint ventures. For the results of the audits and related risk mitigation measures, please refer to the "Human Rights and Labor Audit Results" below; for other human rights risk assessments and mitigation measures, please refer to the "President Chain Store Corporation Human Rights Due Diligence Procedure".

Human Rights and Labor Audit Results

In 2025, a total of 277 relevant personnel, including employees from President Chain Store Corporation and its affiliated enterprises, received related training. In addition to conducting regular human rights and labor audits on tier-one suppliers and joint ventures to ensure compliance with labor regulations and employee working conditions, President Chain Store Corporation has also established operational procedures for its directly operated stores that exceed labor regulatory requirements and uses these procedures as internal audit criteria to safeguard employee rights through rigorous management practices. Furthermore, for outsourced labor arrangements involving dispatched or contracted workers, the Company proactively conducts annual labor condition audits to ensure compliance with applicable regulations. During the service period of dispatched personnel, the Company also monitors their workplace adaptation and provides necessary support and assistance. The audit results and related risk mitigation measures are summarized in the table below.

President Chain Store Corporation’s Own Operations

Target	President Chain Store Corporation's Own Operations
Human rights issues	Overtime work Salary management
Audit actions and frequencies	Monthly attendance record inspection Unscheduled labor audits by competent authorities Annual inspection for labor conditions
Audit coverage rate over the past three years	100%
Identified risks	Attendance records were not signed by employees(Note 1), and reasons were not provided for clocking out late(Note 1)
Human rights risk ratio	15.08%(Note 2)
Human rights risk mitigation measures	All records have been reviewed by the business unit and supervisors in charge
Number of sites/cases implementing mitigation measures over the past three years	113
Human rights risk mitigation implementation rate	100%

(Note 1) Risk requirements are all higher than legal requirements. In the formulation and implementation of its attendance management system, the Company adopts management standards that go beyond legal requirements. For example, monthly attendance details are provided for employees to sign and confirm, ensuring the accuracy. In addition, when employees clock out late, they are required to provide feedback explaining the reason, so that relevant records are clear and both labor and management have no questions regarding attendance details.

(Note 2) Number of sites with identified risk abnormalities from 2023 to 2025 (excluding duplicate sites identified repeatedly within the three-year period) / total number of sites as of the end of 2025

Franchises, tier-1 suppliers, and joint ventures

Target	Franchises and tier-1 suppliers		Joint venture
	Tier-1 suppliers	Franchises	Mister Donut
Potential human rights issues	Overtime work Occupational safety and health Labor rights of foreign workers	Overtime work Salary management	Overtime work Salary management Occupational safety and health
Audit actions and frequencies	Supplier audit (including occupational safety and health and labor conditions)	Annual inspection of labor conditions at franchise stores	Inspection of occupational safety, health and labor conditions
Audit coverage for the past 3 years	82.43%		100%
Risks identified for the past 3 years	Failure to install hazard isolation equipment, failure to regularly inspect and maintain equipment, failure to conduct employee health examinations, failure to provide warnings in texts that are legible to foreign workers, etc.	Abnormalities in attendance records and employee shifts not in accordance with the Labor Standards Act	Employees’ overtime hours exceeding statutory limits and inadequate implementation of hazard assessments for maternal health protection measures
Percentage of human rights risks	4.86%(Note)		100%
Human rights risk mitigation measures	Tier-1 suppliers for private-label brands have incorporated ISO 45001	Records of follow-up reviews and guidance by responsible managers were maintained, and all identified deficiencies were fully corrected	Shift scheduling mechanisms were adjusted, and maternal health hazard assessments were improved
Number of sites/sessions where mitigation measures were implemented in 2025	6	303	1
Implementation rate of human rights risk mitigation	100%		100%

(Note) Number of sites with identified risk abnormalities from 2023 to 2025 (excluding duplicate sites identified repeatedly within the three-year period) / total number of sites as of the end of 2025.