Execution of Ethical Corporate Management

Assessment item Status of implementation Difference from the Ethical Corporate Management Best Practice Principles for TWSE or TPEx Listed Companies and related reasons
Yes No Description

1.Formulating ethical corporate management policies and programs

(1)Does the Company specify ethical corporate management policies and programs in its regulations and external documents? Do the Board of Directors and the management team actively advocate and implement these policies?

(2)Has the Company formulated solutions to prevent unethical conduct from taking place, specified all the solutions in its operating procedures, conduct guidelines, punishments for violations and complaint and grievance channels. and implemented these solutions?

(3)Does the Company take preventive measures against operating activities stipulated in Article 7, Paragraph 2 of the Ethical Corporate Management Best Practice Principles for TWSE or TPEx Listed Companies or those with higher risks of unethical conduct in other scopes of business?

V

 

(1)The Company has established the "Code of Ethical Conduct" and "Procedures for Ethical Corporate Management and Guidelines for Conduct", which clearly specify the matters that should be noted by employees of the Company when performing their duties.

(2)The Company regularly conduct corporate ethics training for employees. New employees are given an employee handbook during their first day of work in order to clearly communicate employee rights and obligations to them. Moreover, the Company incorporates ethical corporate management into performance evaluation of employees and human resource policies, and has established a clear and effective reward and disciplinary system and complaint systems.

(3)The Company strictly complies with corporate ethics and adheres to the corporate culture of integrity and honesty to create a business environment with sustainable development.

No material difference

2.Implementing ethical corporate management

(1)Has the Company evaluated the ethics records of counterparties to its business dealings, and specified ethical business policies in contracts with counterparties related to its business dealings?

(2)Has the Company established a full-time (or part-time) unit directly under the supervision of the Board of Directors, which is dedicated to promoting ethical corporate management and regularly reports its implementation to the Board of Directors?

(3)Has the Company established policies to prevent conflicts of interest, provided an appropriate channel for reporting such conflicts and implemented them?

(4)Has the Company established an effective accounting system and international control systems to implement ethical corporate management, designated its internal audit unit to perform regularly audits or commissioned CPAs to perform audit?

(5)Does the Company regularly hold internal and external training related to ethical corporate management?

V

 

(1)Before establishing business relationship with others, the Company first assesses the legality and ethical corporate management policy of agents, suppliers, customers and other business targets, and evaluates whether they have any records of unethical conduct in the past, in order to ensure that their business management methods are fair and transparent, and that they do not request for, provide or accept bribes.

(2)The Company has set up a full-time ethical corporate management unit to implement and supervise various operations, including the amendment, implementation and explanation of the relevant operating procedures and guidelines for conduct, consulting services, as well as  the registration and filing of report contents, and regularly reports these matters to the Board of Directors.

(3)Employees can report matters related to conflicts of interests to their direct department supervisors or vice president.

(4)

The Company has established effective accounting and internal control systems. Besides, the Company constantly reviews and revises these systems according to regulatory changes and actual needs. These systems are regularly examined by internal auditors in order to ensure the continuous effectiveness of system design and implementation, thereby realizing corporate governance and risk control, and eventually implementing ethical corporate management. The Audit Office is designated as the responsible unit in charge of implementing and supervising ethical corporate management-related operations, and regularly reports such matters to the Board of Directors.

(5)The Company promotes the principle of ethical corporate management in various meetings from time to time, so that its colleagues implement ethical corporate management-related norms internally and externally.

No material difference

3.DirectorsImplementation of the Company's whistleblowing system

(1)Has the Company established a specific whistleblowing and reward system, set up convenient whistleblowing channels and designated appropriate personnel to handle investigations against wrongdoers?

(2)Has the Company established standard operating procedures for investigating reported cases and related confidentiality mechanisms?

(3)Has the Company set up protection for whistleblowers to prevent them from being subjected to inappropriate measures as a result of reporting such incidents?

V

 

When the Company discovers or receives a report regarding an employee's involvement in unethical conduct, the Company will immediately request the employee to stop the relevant conduct if it is confirmed that the employee has violated the relevant laws and regulations or the Company's ethical corporate management policies and regulations, and will appropriately deal with the case. If necessary, the Company seek compensation for damages through legal proceedings to maintain the reputation and interests of the Company.

In addition, the Company will pay special attention to the confidentiality of whistleblowers to avoid improper treatment when dealing with related maters.
No material difference

4.Enhancing information disclosure

(1)Does the Company disclose its ethical corporate management policies and the results of its implementation on the Company’s website and MOPS?

V

 

The Company discloses ethical corporate management-related information via MOPS and the media in a timely manner.

No material difference

5.If the Company has established its own Ethical Corporate Management Best Practice Principles in accordance with the Ethical Corporate Management Best Practice Principles for TWSE or TPEx Listed Companies, state the differences between these principles and its implementation:

The Company has established the "Procedures for Ethical Corporate Management and Guidelines for Conduct". There was no major difference between its implementation and "Ethical Corporate Management Best Practice Principles for TWSE or TPEx Listed Companies".

6.Other important information that facilitates the understanding of the implementation of ethical corporate management: None.

Whistle-blowing Mechanism

1.Reporting Channels:Ennoconn has established and publicized on its website an independent reporting mailbox and telephone number in 2015, to encourage internal and external personnel to report dishonest or improper behaviors.

2.Reporting System:Ennoconn has stipulated the " Procedures for Ethical Corporate Management and Guidelines for Conduct", which should be noted by employees of the Company when performing their duties and provide reporters an access to report any illegal act or any incident that violate Procedures for Ethical Corporate Management and Guidelines for Conduct of Ennoconn’s personnel.

 

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