HTC 2008 Annual Report Download - page 122

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Financial Information
| 109
108 |
2008 Annual Report
environment (e.g., newly enforced regulations on
lead-free products) also allow a full write off (100%
depreciation) of affected products in stock.
5.Accrued marketing expenses
Reasonable estimates for amounts of fees for
marketing and trade discounts such as price
protection, marketing development fund, and
mail-in rebate are made according to contract
stipulations and other related factors and
recognized as marketing fees, and are entered as
fees or deductions from revenue depending on
their category.
6.Reserve for warranty expenses
HTC provides a one- to two-year period of free
warranty maintenance in after sales service. It
makes reasonable estimates of possible amounts
for that service and recognizes warranty liabilities
based on historical experience and other relevant
factors. The allocations to the product warranty
reserve stands at about 4% of revenue currently.
HTC’s Code of Conduct
HTC’s Code of Conduct is a guideline to provide
high ethical standards for all employees in
conducting HTC business activities. All employees
of HTC Corp., including branches and subsidiary
companies, must follow these ethical standards
regardless of the employees’ position, grade level,
and location. This Code includes three major
sections: the General Moral Imperative,
Venders/Suppliers and Customers Relationship,
and Conflict of Interests.
The General Moral Imperative section requires that
HTC commits to providing a safe and healthy work
environment and equal opportunities, and that it
establishes a behavioral code for the treatment of
knowledge about the company’s
assets/properties/information.
The Venders/Suppliers and Customers
Relationship section requires that HTC commits to
maintaining a fair, legal, and long-term relationship
with its venders/suppliers and customers to the
benefit of all parties.
The Conflict of Interest section describes the
behavioral rules for employees in situations of
divided interest.
This Code is superior to any other local regulations
except certain mandatory laws/acts issued by the
local government. In such cases, the Talent
Management Division should submit the specific
local laws/acts to Corporate Talent Management
Division in order to waive this specific regulation of
the Code in that location. Otherwise, any violation
of HTC Code of Conduct and applicable policies
may cause disciplinary action up to and including
the termination of employment.
1.0 General Moral Imperatives
While maintaining a work culture that ensures the
company’s success, HTC strives to treat each
employee fairly and with dignity. HTC is also
committed to complying with the labor laws of each
country it operates in. As well, each employee is
responsible for complying with all applicable
external and internal laws.
HTC’s Code of Conduct