Commitment, Challenge and Opportunity

Given that stakeholders are engaged throughout the value chain, the company acknowledges the critical role of its employees in guiding strategic direction and driving projects forward. Employees are responsible for managing the construction and development of infrastructure projects commissioned by clients and business partners.

Contractors execute construction activities in accordance with assigned plans to ensure value creation for customers. Concurrently, communities located in project areas may experience direct and indirect impacts from construction activities. To uphold responsible business practices, the company is committed to engaging with all stakeholders to identify and safeguard the fundamental rights of throughout its operations as well as remedy to affected parties. It is imperative that contractor employees, business partners, clients, and local communities are treated with fairness and equality. Inadequate management of human rights risks—such as child labor, forced labor, or discriminatory procurement practices—could result in significant operational, legal, and reputational risks for the company.

Supporting the SDGs Goals

Goal 1:
No Poverty
Goal 3:
Good Health and Well-being

Stakeholders Directly Impacted

Shareholders, investors, and analysts:
serve a vital function in ensuring corporate accountability by monitoring and overseeing business operations. Furthermore, shareholders have the right to participate in general meetings, where they can provide input and contribute to decision-making on significant corporate matters. To uphold principles of transparency and good governance, all shareholders are entitled to equal access to accurate, comprehensive, and timely information, supporting their ability to make informed investment decisions in alignment with sustainable development and responsible investment principles.
Employees:
are a crucial driver of the company’s strategic initiatives. To ensure responsible business conduct, the company is committed to implementing clear and comprehensive internal human rights policies that promote fundamental human rights and align with internationally recognized labor standards. These policies aim to cultivate a safe, just, and inclusive working environment, free from all forms of discrimination, in accordance with global best practices in sustainability and corporate governance.
Clients:
must be treated with fairness and equity, adhering to the highest standards of service excellence. Their confidentiality must be rigorously safeguarded, ensuring the provision of accurate, comprehensive, and transparent information. Furthermore, an effective and responsive framework must be established to facilitate timely issue resolution, fostering trust and accountability within the service process.
Business Partners and Contractors:
Business partners and contractors are integral to the supply chain, providing essential materials and labor to support seamless operational continuity. In adherence to corporate governance principles and fair competition standards, the company upholds a transparent and equitable procurement process that promotes shared value and sustainable business development. Standardized contractual frameworks are established to ensure consistency, while stringent data protection measures safeguard the confidentiality of business partners.
Community and Society:
Recognizing that the company operates in close proximity to local communities, any operational shortcomings could result in substantial socioeconomic and environmental consequences. The company upholds the principle that active community participation is essential to achieving sustainable development. Therefore, it is committed to conducting its business with transparency, in alignment with corporate governance best practices, while carefully assessing potential impacts and promoting inclusive employment opportunities to drive long-term socioeconomic growth.

Goals and Performance Highlights

Performance Highlights
In 2024, there were
cases of human rights violations.

Management and Operational Approach

CH. Karnchang is dedicated to upholding human rights policy standards with utmost diligence. The company aims to prevent and mitigate any potential human rights violations across its entire value chain, encompassing and communicated to all stakeholders, including employees, business partners, suppliers, contractors, customers, and local communities. This proactive approach is undertaken to safeguard the company’s reputation and ensure the integrity of its business operations.

The company's human rights policy adheres to internationally recognized frameworks, ensuring compliance with global human rights principles. These include the Universal Declaration of Human Rights (UDHR) under the United Nations, the UN Guiding Principles on Business and Human Rights (UNGP), and the International Labour Organization’s Declaration on Fundamental Principles and Rights at Work. This alignment reflects the company’s commitment to upholding human rights in business operations, in accordance with Sustainable Development Goals (SDGs) and Environmental, Social, and Governance (ESG) criteria, reinforcing responsible corporate governance and ethical labor practices. In 2024, CH. Karnchang undertook a comprehensive review of its human rights policy, reaffirming its commitment to upholding human rights principles throughout its value chain. The policy revision enhances its alignment with internationally recognized labor standards, incorporating provisions that safeguard employees' right to fair and reasonable working hours, protect children's rights, uphold workers' freedom of association and collective bargaining, and ensure full compliance with national labor laws.

CH. Karnchang Public Company Limited is in the process of conducting a thorough Human Rights Due Diligence (HRDD) assessment to evaluate potential risks, identify mitigation strategies, and establish remedial frameworks in alignment with international human rights standards. This initiative underscores the company’s commitment to responsible business practices and sustainable development, ensuring compliance with ESG principles and SDG objectives. The company mandates that all executives and employees adhere to this policy with diligence and continuity, reinforcing transparent business practices that uphold corporate social responsibility and contribute to long-term sustainability.

CH. Karnchang Public Company Limited’s Approach to Human Rights Governance
CH. Karnchang Public Company Limited’s Approach to Human Rights Governance Click to Enlarge

Ensuring Fair Labor Practices in Alignment with Human Rights Principles

CH. Karnchang has implemented a Workplace Welfare Committee and Employee Representation System to uphold and oversee fair labor practices in accordance with human rights standards. This system allows full employee participation, ensuring inclusivity in workplace decision-making and fostering a transparent and constructive dialogue between employees and management. This initiative aligns with Section 96 of the Labor Protection Act B.E. 2541 (1998), which mandates the establishment of employee welfare committees to oversee and enhance workplace well-being. In compliance with legal requirements and best practices in corporate sustainability, the committee holds regular annual meetings to assess and improve employee welfare policies, reinforcing the company’s commitment to fair labor practices and corporate social responsibility.

Governance Responsibilities in Employee Welfare Management

The Workplace Welfare Committee is responsible for overseeing and enhancing employee welfare standards through structured engagements with employers. Its key functions include consulting with employers on welfare provisions, offering expert recommendations to optimize welfare policies, monitoring and ensuring compliance with employer-implemented welfare measures, and submitting policy recommendations to the Labor Welfare Committee. These engagements occur annually to uphold employee rights, ensure equitable access to benefits, and maintain full compliance with labor laws and international labor standards in alignment with ESG and SDG frameworks.

In addition to its role in overseeing employee welfare, the committee serves as a key mechanism for enhancing employee-company relations, representing employees' perspectives, and collaboratively addressing workplace challenges. These initiatives foster a fair, inclusive, and innovative work environment—an essential component of sustainable business development in alignment with ESG principles and long-term corporate resilience.


Human Rights Risk Assessment and Impact Mitigation

CH. Karnchang is currently developing a human rights risk assessment plan, which includes the designation of a dedicated committee and responsible units. This initiative aligns with the United Nations Guiding Principles on Business and Human Rights, as outlined below:

Upon the completion of the planning phase, Ch. Karnchang has designated the Human Resources Department, the Corporate Risk Department, and the Sustainability Committee to jointly enhance awareness of human rights among its employees. In addition, these entities are tasked with identifying and assessing human rights risks across the supply chain, ensuring comprehensive coverage of rights holders and vulnerable groups. These include children, persons with disabilities, women, ethnic minorities, migrants, third-party employees, indigenous peoples, local communities, LGBTQI+ individuals, senior citizens, and pregnant women. Furthermore, the company will implement high-level risk management standards where applicable to mitigate potential human rights impacts.


Whistleblowing Mechanism for Human Rights Violations

The company has instituted a formal whistleblowing system to enable both internal and external stakeholders to report human rights violations. In alignment with principles of transparency and fairness, comprehensive whistleblower protection measures have been established. Individuals submitting reports or cooperating in investigative procedures are granted the option of anonymity to safeguard their security and uphold the confidentiality of their personal data. These measures reinforce the company’s commitment to ethical business practices and responsible corporate governance, in accordance with internationally recognized human rights standards and sustainability frameworks. In alignment with its commitment to human rights and responsible business conduct, the company prioritizes remediation for individuals impacted or affected parties where it has been identified by human rights violations. Through fair and appropriate processes, the company seeks to mitigate harm and uphold equitable treatment for all stakeholders in compliance with international standards. Furthermore, proactive preventive measures have been implemented to minimize the likelihood of recurrence, reinforcing the company’s dedication to sustainable and ethical business practices.

Reporting Human Rights Violations
CH. Karnchang Public Company Limited (Head Office)
587 Viriyathavorn Building, Sutthisarnvinijchai Rd., Ratchadaphisek Subdistrict, Dindaeng District, Bangkok 10400, Thailand (For correspondence)

Incidents Human Rights Violations in 2024

The company has implemented inclusive and systematic policies to enhance labor rights and promote diversity within the organization. Key initiatives include the elimination of child labor and the eradication of forced labor, fostering employee participation in human rights governance, regulating and reducing excessive working hours, and ensuring fair and equitable compensation. These measures align with international labor standards and contribute to the company’s broader commitment to sustainable and ethical business practices.

In alignment with ESG and SDG principles, the company is committed to fostering workplace diversity, equity, and inclusion (DEI). It upholds a strict non-discrimination policy, ensuring equal treatment for employees regardless of race, ethnicity, religion, gender, age, gender identity, disability, or nationality. To promote fair employment practices and career development, the company has implemented structured initiatives, including regular training and capacity-building programs on workplace equity, ensuring all staff trained on human rights policy. These efforts contribute to cultivating an inclusive corporate culture that respects individual differences and enhances organizational sustainability.