Ethical Corporate Management
| Item | State of the Company's Implementation | Any Departure from the "Ethical Corporate Management Best Practice Principles for TWSE/GTSM Listed Companies" and Reasons | ||
| Yes | No | Summar | ||
I. Establishing Ethical Corporate Management Policies and Programs |
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| (I) Does the Company formulate ethical corporate management policies approved by the Board of Directors and declare itsethical corporate management policies and procedures along with commitments from the Board of Directors and senior management to proactively implement those management policies in its guidlines and external documents? | V | (I) Approved by the Board of Directors, the Sustainable Development Best Practice Principles are formulated to regulate the ethical conduct of the management and all employees. | (I) No material departure. | |
| (II) Does the Company establish assessment mechanism for risk arising from unethical acts, regularly analyze and assess operating activities with higher risk of unethical conducts within its business scope, and formulate preventive schemes accordingly, which at least contain preventive measures for conducts set forth in Paragraph 2, Article 7 of the "Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies"? | V | (II) The Company's employee handbook specifies that all employees shall explain the Company's ethical corporate management policies and relevant rules to the counterparties and clearly refuse to directly or indirectly provide, promise, request or receive improper benefits in any form or name while engaging in business activities. | (II) No material departure | |
| (III) Doest the Company specify and thoroughly implement operating procedures, behavior guidelines, and punishment and grievance system for violations in the preventive schemes for unethical conducts, and regularly review and modify the aforementioned schemes? | V | (III) The Company's employee handbook specifies that all employees are not allowed to have unethical conduct. In addition to regular audits conducted by internal auditors, employees may express their opinions or complaints with the HR or management directly. | (III) No material departure | |
II. Implementing Ethical Corporate Management |
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| (I) Does the Company evalute the integrity records of counterparties and specify the terms of ethical conduct in the contracts signed with the counterparties? | V | (I) According to the "Policy for Supplier Management," the Company evaluates the integrity records of counterparties. After dealing with or visiting the counterparties, the Company proceeds to create supplier master data for management. | (I) No material departure. | |
| (II) Does the Company set up an exclusively dedicated unit under the Board of Directors to promote ethical corporate management and regularly (at least once per year) report its ethical corporate management policies and preventive schemes for unethical conducts as well as implementation status to the Board of Directors? | V | (II) The director of corporate governance and the administrative department are responsible for promoting honest management and implementing relevant business plans, and attend the report of the board of directors from time to time, and accept the supervision and review of the board of directors. In addition, the human resources department is responsible for the formulation and promotion of relevant measures for employees' professional ethics; the audit unit performs the inspection and supervision of relevant operations. If dishonest facts or behaviors are discovered, the superior supervisor will handle the incident and report the review and improvement methods to the board of directors. |
(II) No material departure. | |
| (III) Does the Company formulate policies to prevent conflicts of interest, provide proper channels of explanation, and implement them? | V | (III) The Company has formulated the "Procedures for Having Business Dealings with Related Parties, Specific Companies and Affiliates" to prevent any conflict of interests. In addition, the Company provides the proper channels of explanation for employees to express their opinions or compaints with the HR or management directly. | (III) No material departure. | |
| (IV) Does the Company establish effective accounting and internal control systems to implement ethical corporate management and have an internal audit unit formulating relevant audit plans based on the assessment outcome of risk associated with unethical conducts for the audtis on the compliance with the prerventive schemes for unethical conducts, or entrust the CPAs to conduct the audits? | V | (IV) To ensure the effect of the Company's accounting system and internal control system, internal auditors audit the compliance of the systems on a regular basis, and external auditors are appointed to audit the internal control system every year. | (IV)No material departure. | |
| (V) Does the Company regularly hold internal / external training on ethical corporate management? | V | (V) The Company conveys the importance of ethical corporate management in internal training or orentation training for new employees. | (V) No material departure. | |
III. Whistle-blowing System |
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| (I) Does the Company have a specific whistle-blowing and reward system, establish convenient whistle-blowing channels, and assign the appropriate personnel to deal with the reported personnel? | V | The Company's employee handbook specifies the channels of grievance or explanation. The HR is responsible to receive the employees' opinions/complaints/reporting cases and forward them in secret to the responsible manager/unit for handling. After the cases are closed, the employees will be informed of the results of handling. Necessary or special cases are covered in training to all employees. | No material departure. | |
| (II) Does the Company formulate the standard operating procedures for investigation and the confidentiality mechanisms for the reported matters? | V | |||
| (III) Does the Company take measures to protect the whistle-blowers from improper infringement due to reporting? | V | |||
IV.Enhancing Disclosure of Information |
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| (I) Does the Company disclose the status of operations of the "Ethical Corporate Management Best Practice Principles" on the company website and the Market Observation Post System? | V | The Company website→Investor Relations→ Major Internal Policies→"Ethical Corporate Management Best Practice Principles" | In practice, the Company has performed the daily operation based on the spirit of ethical corporate management. | |
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V. If the Company has its own ethical corporate management principles formulated according to the "Ethical Corporate
Management Best Practice Principles for TWSE / GTSM Listed Companies," please explain any departure from the "Ethical Corporate Management Best Practice Princples for TWSE / GTSM Listed Companies": The company has formulated the "Corporate Governance Code of Practice", "Code of Integrity Management" and internal
control systems related to the company's honest management for compliance. Currently, there is no major difference between the operation of the relevant matters and the relevant codes. |
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| VI. Other important information on the Company's implementation of ethical corporate management (such as amendments to the ethical corporate management principles) : None. |
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