HTC 2015 Annual Report Download - page 47

Corporate governance
Corporate governance
90
91
Item
ImplementationStatus Reasons for
discrepancy with
the Corporate Social
ResponsibilityBest
PracticePrinciples
forTWSE/GTSM
Listed CompaniesYes No Summary
3.Protectingthepublicinterest
(9) Whether the contract between the
companyanditsmajorsuppliersincluded
clauses of termination and removal of the
contract should the suppliers be involved
in violation of its CSR policies that cause
amajorimpacttotheenvironmentand
society?
VInDecember2010,HTCjoinedtheElectronicIndustryCitizenshipCoalition(EICC).Based
ontheEICC'sElectronicIndustryCodeofConduct,HTCdefineditsownversioncalledthe
"HTCElectronicSupplierCodeofConduct".BasedonHTC'sSupplierCodeofConductand
the governing laws applicable to the Supplier's manufacturing plant, the company is
able to conduct supplier audits within the scope of corporate social responsibility, including
workingconditions,environment,safety&health,integrity&ethicsandrelatedmanagement
systems
None
4. Enhancing information disclosure
Status of disclosure on the company's website
andMOPSofrelevantandreliableinformation
regarding corporate social responsibility.
VHTC's commitment to corporate social responsibility is available on our global website (www.
csr.htc.com),andHTC'sCSRreportisdisclosedonMOPS.
None
5. For companies who follow the Listed Company Corporate Social Responsibility Code of Conduct as a guideline to setting its own Corporate Social Responsibility Code of Conduct,
please describe any differences between operations and guidelines:
HTC has yet to define a corporate social responsibility code of conduct.
6. Anyotherimportantinformationthathelpstounderstandcorporatesocialresponsibilitypractices
HTCdrafteditsCSRreportin2014andreceivedtheIIGoldenAwardformanufacturersinTaiwanCorporateSustainabilityAwardsof2014.
HTCinvitestheHsinchuBloodDonationCentertoorganizefourblooddriveseveryyear.Theannualblooddonationtargetisover1000bags.
TheHTCFundhasestablishedthreeCharacterandEnglishInstitutesinHualian,Yunlin,andChiayi.In2013,HTCplanstoaddanotherschoolinTaitung.Additionally,in2012
HTC extended outside of the education realm, using the influence of Character Education to move into other areas, which is evident from the development of Character Towns and
Character Hospitals.
7. Ifthecompany'sproductsorcorporatesocialresponsibilityreportshavebeenconfirmedbyrelevantinstitutions,pleaseindicate:
Report1GRI31writtenguidelineshavepassedAA100verificationbyanimpartialthird-partySGSandreceivedtheconfirmationstatement.
(6) Status of HTC's Implementation of Ethical Corporate Management Best
Practices and Adoption of Related Measures:
StatusofImplementationofEthicalCorporateManagementBestPractices
Item
ImplementationStatus Reason for Non-
implementation
Yes No Summary
1. Adoption of ethical corporate management policies and
programs
(1) Whether HTC discloses clearly for adopting ethical
corporate management policies and procedures in
its rules and external documents, and of the board
of directors and the management in undertaking to
rigorously and thoroughly enforce such policies.
V HTC's Code of Conduct is a guideline to provide high ethical standards for
all employees in conducting HTC business activities. This Code includes
threemajorsections:theGeneralMoralImperative,Vendors/Suppliers
andCustomersRelationship,andConflictofInterestswhichcoversHTC's
ethical management policy. This Code is disclosed in the Annual report
and on the investor website.
TheBoardofDirectorsandthemanagementallplacethegreatest
importance on adopting the highest standards of integrity and ethics in
corporatemanagementandemployeeworkconduct.Bribery,corruption,
deception, and all other forms of improper conduct are prohibited.
HTC does not produce
a Ethical Corporate
ManagementBest
PracticePrinciplesper
the Ethical Corporate
ManagementBest
PracticePrinciples
forTWSE/GTSM-
Listed Companies.
HTC adopted Code of
Conduct for follow up.
(2) Whether the company adopts a program to prevent
unethical conduct, including its operational
procedures, guidelines for ethical conduct,
punishment of violance and complaint system.
VTheCodeofConductdescribesCorporateConfidentiality,Protection
ofProperty,HTC'sAssets,andPersonalInformation,standardsfor
entertainmentandBusinessCourtesiesamongAllemployeesortheir
immediately family members, customers and suppliers/Vendors, Travel,
Conflictofinterest,OutsideEmploymentandInsideTradingtoprevent
unethical conduct. HTC also provides dedicated e-mail for employee
to complaint. The Code of Conduct is one of the courses in the new
employee orientation and is declared in the e-learning courses. Further,
in order to prevent insider trading, HTC invites legal professionals to
provide trainings to managers. HTC also adopted the Corporation Rules
forDonationsOutofIncomeastheprincipletoapproveandprocess
Company's donation.
None
(3) Whetherthecompanyasserts,whenestablishing
the program to prevent unethical conduct
according to the article 7 of the Corporate
GovernanceBest-PracticePrinciplesforTSEC/
GTSMListedCompanies,toaddresswhich
business activities within its business scope pose
higher risk of unethical conduct, and to adopt
preventive measures against it.
VPertheCodeofConduct,HTCwillholdnewemployeeorientationandask
employees to review the code periodically to prevent unethical conduct.
None
2. Enforcement of ethical corporate management
(1) Whether the company exerts in its business
activities to evaluate the counterparty the record of
unethical conduct, and to include ethical conduct
clauses in its business contracts.
V When signing purchasing or engineering contracts with suppliers, HTC
consistentlyrequiresthesupplierstocooperatebysigninganIntegrity
PolicyStatementorSupplierIntegrityCommitmentLetter,toexpressly
provide that its business partners will uniformly comply with national
laws and refrain from using unethical conduct to gain advantages in
business or work (for example by offering kickbacks, entertainment, or
other improper benefits). The signed terms and conditions expressly
stipulate that HTC will voluntarily terminate its dealings with any
cooperatingfirmthatviolatestheIntegrityPolicy.HTCwillseek
compensation for damages if any breach of commitment happens due to
the violation of the policy in order to consistently maintain a relationship
of integrity between HTC and its business counterpart.
None
(2) Whether HTC establishes and operates a dedicated
(or part-time) unit with responsibility for the
enforcement of ethical corporate management
undertheBoardofDirectors,andperiodically
reporttotheBoardofDirectors.
VHTC has not established a dedicated (or part-time) unit with responsibility
for the enforcement of ethical corporate management. Currently, HTC
has adopted an employee code of conduct that sets rules for compliance
by all division supervisors and employees in their execution of company
operations, to prevent violations of ethical corporate management
principles by HTC. We have a dedicated email: anti-corrup[email protected]
to report any violations. When violations of the employee code of conduct
occur or are suspected, the human resources and legal divisions will
cooperate to investigate and then report to management so that necessary
disciplinary measures can be taken. Also, HTC's internal auditors conduct
routine audits of the work operations and internal control system
operations of HTC's various divisions, and submit quarterly reports to the
boardofsupervisorsandtheBoardofDirectors.
HTC has not established
a dedicated (or part-
time) unit with
responsibility for the
enforcement of ethical
corporate management.
(Continued)