Huawei 2014 Annual Report Download - page 127

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125Corporate Governance Report
■ Identify key control points and the Separation of
Duties Matrix for each process, and apply these to
all regional offices, subsidiaries, and business units.
■ Conduct monthly compliance tests on key control
points and issue test reports to ensure continuous
and effective monitoring of internal controls.
■ Optimize processes and internal controls based
on business pain points to improve operational
efficiency and help achieve business objectives.
■ Perform SACAs to assess the overall process design
and the effectiveness of process execution by each
business unit, and then report the results to the AC.
Information & Communication
Huawei has developed multi-dimensional information
and communication channels to ensure the timely
acquisition of external information from customers,
suppliers, and other parties. It has also created formal
channels for transferring internal information, and
offered an online space, Xinsheng Community, for
employees to freely communicate their thoughts and
ideas. Corporate management holds regular meetings
with departments at all levels to effectively communicate
management orientation to employees and ensure
effective implementation of management decisions.
All business policies and processes are available on
the company's Intranet. Managers and process owners
regularly organize training programs on business
processes and internal controls to ensure that up-to-
date information is made available to all employees.
The company has established a mechanism for process
owners at all levels to regularly communicate with each
other, review the execution of internal controls, and
follow up on internal control issues.
Monitoring
Huawei has established an internal complaint channel,
an investigation mechanism, an anti-corruption
mechanism, and an accountability system. The
Agreement on Honesty and Integrity that Huawei has
signed with its suppliers clearly stipulates that suppliers
may report improper conduct by Huawei employees
through the channels stipulated in the Agreement to
assist the company in monitoring the integrity of its
employees. The internal audit department independently
assesses the overall status of the company's internal
controls, investigates any suspected violations of the
BCGs, and reports the audit and investigation results to
the AC and senior management.
Huawei has also implemented a mechanism for internal
control appraisals of GPOs and regional managers, as
well as their accountability and impeachment when
and where necessary. The AC and the CFO regularly
review the company's internal control status, and
receive reports on action plans for improving internal
controls, if necessary, and on plan execution progress.
Both have the authority to request the relevant GPOs
or business executives to explain their internal control
issues and take corrective actions. The AC and the CFO
may also need to submit their proposals to the HRC for
disciplinary action or impeachment.