Overview of Business Integrity Implementation
The company designates the Finance Department as the responsible unit (hereinafter referred to as the company’s responsible unit) and allocates sufficient resources and qualified personnel to handle the revision, implementation, and documentation of this operating procedure and code of conduct, as well as related operations such as reporting and recording, and supervise their execution. The company also reports on the implementation status to the Board of Directors regularly (at least once a year).
The company has established the “Operating Procedure and Code of Conduct for Business Integrity,” which requires the approval of the Board of Directors for its establishment, amendment, or abolishment. The Board of Directors has a duty of due care to assist in supervising the company to prevent dishonest behavior and ensure the implementation of the business integrity policy.
●Execution Status of Integrity Management in 2023 is as follows：
| Project | Implementation Status |
|---|---|
| 1. Assisted in integrating integrity and moral values into the company’s business strategy, and collaborated with regulatory frameworks to establish measures ensuring ethical operations. | The company has established the “Corporate Governance Best Practices” to create and enhance a corporate culture that promotes ethical operations. |
| 2. Regularly analyzed and assessed the risk of dishonest behavior within the scope of operations, and formulated preventive measures against dishonest behavior. Developed relevant standard operating procedures and behavior guidelines within each plan. | Procedures such as the “Internal Handling Procedures for Significant Information” and the “Code of Conduct Operation Procedures and Behavioral Guidelines for Ethical Operations” have been established to prevent dishonest behavior. |
| 3. Planned internal organization, staffing, and responsibilities. Implemented mechanisms for mutual supervision and checks for business activities with higher risks of dishonest behavior within the operational scope. | The company has implemented accounting systems, decision-making authorities, and proxy management regulations to rigorously control each transaction. An audit department has been established to conduct regular and irregular internal audits. Each factory undergoes annual internal and external ISO operation audits. For business activities with a higher risk of dishonest behavior within the operational scope, mechanisms for mutual supervision and checks are implemented. |
| 4. Promoted and coordinated the advocacy and training of integrity policies. | Upon new employee orientation, the HR department explains the company’s regulations, employee code of conduct, including ethical principles. Periodically, integrity policies, preventive measures, and consequences of unethical behavior are communicated in department meetings, business management meetings, and educational training sessions. |
| 5. Planned a whistleblowing system to ensure the effectiveness of its implementation. | The company has internally announced an independent reporting mailbox, hotline, and mailing address, and has posted the management regulations and reporting channels on the company’s website for internal and external use. As of the current year, the Finance Department has not received any internal or external whistleblower letters. |
| 6. Assisting the Board of Directors and management in auditing and evaluating the effectiveness of the preventive measures established for ethical operations. Regular assessments are conducted on relevant business processes to ensure compliance, and reports are generated accordingly. | The Finance Department conducts periodic audits and reports the audit results to the management and the board of directors. |
●Operating Procedure and Code of Conduct for Business Integrity
The term “company personnel” refers to the directors, executives, employees, appointees, and individuals with substantial control within the company and its group enterprises and organizations.
Any provision, commitment, request, or acceptance of any improper benefit by company personnel from a third party shall be deemed to have been done by company personnel.
●Prevention of Fraud and Misappropriation of Business
To strengthen the prevention of internal fraud, company personnel shall not directly or indirectly provide, accept, promise, or request any improper benefit or engage in any other acts that violate integrity, law, or fiduciary obligations while carrying out business activities to obtain or maintain benefits.
To implement business integrity and ethical behavior, the company conducted one training session on business integrity issues in the 112th year, with a duration of four hours per participant.
●Establishment of Whistleblowing Mechanism
In the 105th year, the company established the “Operating Procedure and Code of Conduct for Business Integrity” to ensure the sustainable development of the company, encourage reporting of any illegal activities, establish a whistleblowing mechanism, strengthen internal and external reporting channels, and establish clear processing procedures to protect the legal rights and interests of whistleblowers and relevant individuals. The company specifies that the internal audit unit is responsible for handling internal reports of violations of business integrity and sets up an external mailbox to receive external reports. The “Employee Code of Conduct” explicitly states that employees shall not accept entertainment, gifts, kickbacks, or other illegal benefits in relation to their job duties, and they should comply with relevant laws and integrity principles, prevent conflicts of interest, and refrain from bribery or seeking personal gains, thereby enhancing corporate governance and implementing the code of business ethics.
●The company reported to the Board of Directors on November 8th 2023.