HTC 2010 Annual Report Download - page 101

200 2 0 1 0 H T C A N N U A L R E P O R T
or venders/suppliers. Conflicts caused by emotional languages
or behaviors are strictly prohibited.
2.2 Product Quality and Safety
The Company is committed to pursuing excellence and
maintaining quality at all times. The Company strives to
continuously improve the quality of products and service in
compliance with related safety regulations/laws in order to
benefit our customers and venders/suppliers and achieve
world-class competitiveness. To protect HTC's reputation
and the interest of our customers and venders/suppliers, all
employees must comply with our quality processes and safety
requirements.
2.3 Performance of Contracts
Company contracts must be executed not only in accordance
with the requirements of each contract, but also in compliance
with all laws and regulations applicable to our business.
Any unfair or unreasonable regulation or condition should
be avoided. Purchasing decisions must be made in the best
interest of HTC by considering the venders'/suppliers' suitability,
quality, price, and delivery of products or services; personal
preferences are not allowed for special oers. Purchasing
agreements/sales contracts and related evaluation information
should be documented clearly and confidentially. Contract
information of customers and venders/suppliers, including but
not limited to their names, price, delivery conditions, payment
terms, are as confidential as Company documents. Every
employee must protect this confidential information from
misuse and disclosure.
2.4 Gifts, Entertainment and Business Courtesies
All employees or their immediate family members are not
allowed to accept kickbacks, commissions, lavish gifts, or
luxurious entertainment from customers, suppliers/venders,
or anyone in a business relationship in any kind of situation.
However, gifts of nominal value of less than NT$1,500 or US$50
(maximum one time per outside company per year), such as
small promotional items bearing the company's name/logo
or small food items, are not prohibited. The acceptance or
giving of a gift should be reported to and approved by local
management. Employees may provide or accept meals or
entertainment if these activities are legitimate, consistent with
accepted business practices and demonstrably beneficial to
building a business relationship. However, regardless of the
amount, employees are not allowed to accept or give kickbacks
and bribes, such as (but not limited to) any type of gift, cash,
stock, bond or equivalents, or to participate in any business
courtesy that may compromise the employees' judgment or
motivate the employees to perform acts prohibited by laws/
regulations or HTC policies. Meal expenses between/among
colleagues can not be treated as entertainment. However,
expenditures incurred for entertainment immediately before,
during, or after a business meeting are acceptable, if those who
enjoy the entertainment are from another country or continent.
2.5 Business Travel
All employees are responsible for ensuring that their business
travels are intended to further Company business interests,
and the business travel and entertainment expenditures shall
be reasonable, prudent, and in accordance with applicable
Company policies. On behalf of the Company, employees
should be aware that certain venues, whose entertainment
nature or atmosphere may impact negatively on the
Company's reputation, such as a sexually-oriented site or
similar environment, are not appropriate for business-related
meetings or activities. These venues are not acceptable even
if the expenses incurred are not paid by the Company. Even
golf gatherings should be minimized if the expenses are not
personal.
3.0 Conflict of Interest
All employees must avoid any activity that is or has the
appearance of being hostile, adverse, or competitive with the
Company, or that interferes with the proper performance of
their duties, responsibilities or loyalty to the Company.
3.1 Outside Employment
All employees are prohibited to work either part-time or full-
time for or receive payments of services from any competitors,
customers, venders/suppliers or subcontractors of HTC. If any
employee is invited to serve as a lecturer, board member of an
outside company, member of an advisory board, committee or
agency, he/she must get appropriate approval from the local
top manager in advance. Even if the invitation does not violate
the above, permission from a top manager is still required. In
general, employees are not restricted from being members
of the boards of charitable or community organizations. HTC
also permits employees with appropriate approval to serve as
directors of outside companies that are invested in by HTC or
are not competitors or service providers of competitors.
3.2 Insider Trading
All employees are not permitted, using their own names or the
names of people with whom they have personal relationships,
to engage in business ventures where business scope is the
same as or similar to HTC or to invest exceeding five percent
of total market value in such company. Employees are also
prohibited from using so-called “Insider Information” to gain
personal profit or to influence the normal operation of other
businesses, such as investment in competitors, customers,
venders/suppliers or subcontractors. “Insider Information”
comprises facts that an employee knows, but people outside
of HTC may not know, which might be in written form or
discussed orally in a meeting. Inside information may also be
information received from another company, such as from
customers, suppliers or companies with which HTC has a
joint research or development program. Therefore, employees
may never use insider information to trade or influence the
trading of stocks of HTC or other companies and should
also not provide “tips” or share insider information with any
other person who might trade stock. Insider trading violates
company policies and may subject the employee to criminal
penalties in accordance with government regulations/laws.