Corporate Governance

To implement ethical management policy, the Company has established “Ethical Corporate Management Best Practice Principles”, “Codes of Ethical Conduct” and “Operating Procedures for Handling Internal Material Information and Preventing Insider Trading”. Dedicated units report the state of implement to the board of directors at least once per year, and the relevant regulations are continuously modified and promoted according to the regulatory updates. In 2020, the dedicated units conducted ethical management promotion and training for 3,501 people (about 928.5 hours ), and reported the implementation status to the board of directors on May 13, 2021.

I. Dedicate Unit for Promoting Ethical Management:

The original dedicated unit for promoting ethical management was the General Manager Office. To fully integrate the planning and promotion of the various activities of corporate governance, the Company passed a board resolution on March 30, 2021, to appoint the Director of Finance & Accounting Division, Alice Wang, as the chief corporate governance officer, responsible for coordinating the various corporate governance activities. The dedicated unit for ethical management is incorporated into the scope of duties of the corporate governance unit, where the chief corporate governance officer will lead the dedicated personnel from the various departments responsible for ethical management promotion.

II. Scope of duties and powers

• (1) Assisting in incorporating ethics and moral values into the Company’s business strategy and adopting appropriate prevention measures against corruption and malfeasance to ensure ethical management in compliance with the requirements of laws and regulations.
• (2) Analyzing and assessing the risks of unethical conduct within the business scope on a regular basis and accordingly adopting programs to prevent unethical conduct and setting out in each program the standard operating procedures and conduct guidelines with respect to the Company's operations and business.
• (3) Planning the internal organization, structure, and allocation of responsibilities and setting up check-and-balance mechanisms for mutual supervision of the business activities within the business scope which are possibly at a higher risk for unethical conduct.
• (4) Promoting and coordinating awareness and educational activities with respect to ethics policy.
• (5) Developing a whistle-blowing system and ensuring its operating effectiveness.
• (6) Assisting the board of directors and management in auditing and assessing whether the prevention measures taken for the purpose of implementing ethical management are effectively operating, and preparing reports on the regular assessment of compliance with ethical management in operating procedures.

III.Through new employee training and regulatory advocacy from time to time, the Company aims to convey the corporate philosophy of ethical management to all employees, and the training and campaign of ethical management in 2020 are as follows:

Unit: Number of people; hours