Issue Date: August, 2023
Commitment on Business Integrity and Probity
Coretronic is committed to upholding business ethics and requires all members of the company to adhere to principles of honesty and integrity. This is done to safeguard the company's assets, rights, and reputation, and to ensure the interests of the company and all stakeholders. In light of this, we have developed the following guidelines and codes of conduct: " Ethical Corporate Management Best Practice Principles," "Operating Procedures and Guidelines for Integrity Management," "Codes of Ethical Conduct," "Responsibility for Business Alliance Code of Conduct Management Manual," and "Supplier Conflict of Interest Management Measures." These documents serve as ethical guidelines for all members of Coretronic and our suppliers. We strictly prohibit any behavior that may result in undue benefits (including improper entertainment, commissions, bribery, hospitality, etc.) obtained through the convenience of one's position, or any actions that could potentially impact the company's reputation and competitiveness.
Supplier Anti-Corruption Policies
Except for the following cases: Taiwan/domiciled publicly listed companies and their affiliated enterprises with a shareholding of 50% or more, suppliers who have publicly announced their compliance with anti-corruption commitments on their official websites, suppliers who have signed procurement contracts containing anti-corruption clauses, suppliers with annual transaction volumes below a certain threshold, suppliers designated by customers, and sole suppliers of specific components, all suppliers of production materials to Coretronic are required to sign an "Integrity Commitment." This is to ensure fair and transparent business transactions between both parties. In the event that a supplier violates anti-bribery and anti-corruption regulations, resulting in damages to the company, necessary legal actions will be taken to seek compensation based on the terms outlined in the supplier's signed Integrity Commitment. In 2022, the signing rate of the Integrity Commitment reached an impressive 99% after excluding suppliers who were not required to sign.
Anti-Corruption Reporting Mailbox
Coretronic has established the "Complaint Channel for Stakeholders and Employees' Violations of Professional Ethics" email address (8215@coretronic.com) and a dedicated complaint hotline (For Taiwan plants, please dial +886-37-777000, ext. 8215; for China plants, please refer to the phone numbers provided on the official website for Visual Solutions and Energy Saving Products operating locations. For Kunshan plants, please dial ext. 2199; for other plants, please dial ext. 6220). Employees of Coretronic and external individuals can use the aforementioned email address and complaint hotline to seek advice on matters related to the company's integrity-related affairs, report any violations of ethical behavior, and request an independent investigation by the company's internal audit unit conducted in a confidential manner. The identity of the whistleblower will be strictly protected. The investigation report will be submitted to the management level for decision-making, and the handling of reported cases will be subject to internal disciplinary measures or legal actions, depending on the disciplinary measures deemed appropriate.
In 2022, the Taiwan plants did not receive any complaint cases, while the China plants received one complaint case, which was thoroughly investigated and found to have no violation of company regulations. Going forward, Coretronic will continue to implement anti-corruption policies and establish a corporate culture of integrity and ethical conduct.
Performance In Business Integrity
- The Board of Directors has approved the "Ethical Corporate Management Best Practice Principles" and assigned the Human Resources department to develop and implement integrity policies and preventive measures.
- Regularly report the implementation of corporate integrity to the Board of Directors on an annual basis.
- Establish a dedicated section for "Employee Code of Ethics," which includes relevant guidelines for integrity, reporting channels, and case studies.
- In addition to their fiduciary duty of good governance, the Board of Directors also oversees the implementation of integrity practices to enhance effectiveness.
- Distribute "Integrity Reminder Cards" to all employees.
- In 2022, the Taiwan plants made "Awareness on Business Integrity Course" and "Prevention of Insider Trading Training" mandatory courses for all employees. Employees were required to watch training videos and achieve a score of 80 or above on the post-training assessment to complete the courses. They also had to sign the "Statement of Business Integrity Principles." The total number of employees who should have received the training in 2022 was 1,709, and 1,700 employees completed the training and signed the declaration. The completion rate and signing rate were both 99%.
- In 2022, the Kunshan plants and Wujiang plants respectively made "RBA Knowledge Awareness" and "Integrity Management - Employee Ethics" mandatory courses for all indirect employees. The Kunshan plants had 510 employees who should have received and completed the training, with a 100% completion rate. The Wujiang plants had 606 employees who should have received the training, and 597 employees completed it, resulting in a 99% completion rate.
