Ethical Management
The Company formulated the “Ethical Corporate Management Best Practice Principles” and “Code of Ethical Conduct”, in accordance with current laws and regulations, to establish an ethical corporate culture for the development of a sound business operation model. All formulations and revisions were approved by the board of directors.
The company drafted the “Code of Ethical Conduct” and “Code of Integrity Management” in May, 2014, and continued to revise throughout the implementation period. The latest version was approved by the board of directors on November 11, 2020. The above regulations are published on both the company’s internal and external websites and are updated immediately after each revision. The company also stated, in the external contract, the handling methods for policy violation to demonstrate the company’s active commitment to the “ethical conduct code” and the “integrity management code”.
Responsible Party for the Promotion of Corporate Code of Ethics and Business Conduct
The company’s management department is responsible for the planning, promotion and supervision of corporate social responsibility, integrity management and other related issues. The department reports the implementation status to the board of directors on a regular basis and at least once a year.
Reporting the Implementation Status to the Board of Directors
In March 2021, all board of directors and executive managers signed the “Declaration of Compliance with the Integrity Management Policy”, declaring to abide by the code of ethics and relevant business conduct. Furthermore, they commit to the implementation of the code of ethics policy. (All board of directors signature ratio reached 100%)
- At the 449th board meeting (December 14, 2022), the party promoting integrity management reported to the board of directors on the implementation progress.
Specific Practices and Policies for Promoting Management Integrity
To prevent dishonest behavior, and to implement the “Code of Integrity Management”, the company has formulated the “Integrity Management Operating Procedures and Behavior Guidelines”. The content has clear regulations on the integrity of all business behaviors, punishment for violations, and systems for appeal. In addition to the regulations, the company has also strengthened publicity and requirements for honest operation in the company policy and related operating methods. Moreover, the company promotes and enhances integrity management for all employees through internal communications, educational training, and strengthening operational standards.
Since 2020, to uphold and implement our company’s Ethical Corporate Management Best Practice Principles, we have requested our suppliers to sign and thereby adhere to the Commitment of Honest Cooperation and the Commitment of Supplier for Corporate Social Responsibility.
Since 2022, we have provided training programs on Ethical Management and Anti-Corruption for our important suppliers to demonstrate and strengthen Chia Hsin Cement Corporation’s Ethical Management and Code of Integrity Management.
Management Integrity Education and Training
In order to implement the integrity management policy and actively prevent dishonest behaviors, the company has formulated relevant policies and promoted employee education and training for integrity management. The 2023 progress on the promotion of integrity management education and training:
Integrity in Business Employee Education and Training Program | Several physical and online “Integrity in Business Employee Education and Training Program” were conducted on the following dates: 10/5, 10/13, 10/17, 10/23, 11/24, and 12/1 in 2023. Additionally, we offered links to the absent employees to view the recording courses during 11/25 to 12/12. Professional instructors from Deloitte & Touche provided expertise in teaching essential regulations of integrity in business, including the United Nations Convention against Corruption and the Integrity in Business Code for listed companies. The topics covered workplace integrity, legal responsibilities, case studies on violations of integrity, prevention of insider trading, and practical case sharing. A total of 219 employees from the corporation participated in the courses, with 100% coverage for all employees and new hires, accumulating a total training duration of 2 hours. We will continue our commitment to promoting education and training on business integrity within the corporation. |
Supplier Education Program on Integrity in Business | In 2023, we invited suppliers and related partners to participate in a 2-hour Supplier Integrity Education Program, which took place from November to December, with a total of 18 suppliers and 59 individuals attending. |
New Employee Education, Training, and Orientation |
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Educational Promotion on the Procedures for the Prevention of Insider Trading
The company established the “Management Procedures for Preventing Insider Transactions”, advocating to current insiders about the precautionary measures related to the declaration of insider shareholdings at least once a quarter. The related procedures and regulations are also distributed electronically every month to provide the education and advocacy in a timely manner.
The company provides legal promotion manuals for new directors and independent directors after assuming office. And requests the signing of the acknowledgement of relevant laws and regulations within five days of assumption. This copy of the declaration from the directors and independent directors will be sent to Taiwan Stock Exchange within ten days of assumption and kept for future reference.
In order to ensure our shareholder’s rights and interests and to fulfill equal treatment, our company formulated the Code of Practice for Corporate Governance. This code was approved by our board of directors in the 444th board meeting on May 3rd, 2022. The context requires all board members to suspend any trading of the company’s stocks or other equity securities during the closed period of 30 days before the announcement of the annual financial report and 15-days before the announcement of the quarterly financial report. In addition, to improve the immediacy, correctness, and integrity of company’s material information of disclosure, we amended the “Disclosure Material of Inside Information and Management Procedures for Preventing Insider Transactions (內部重大資訊處理暨防範內線交易管理作業程序)”. This management procedure was approved by our board of directors in the 449th board meeting on December 17th, 2022.
The company held the “Insider Trading Prevention Promotion Conference” on October 19th, 2022 and the “Ethical Corporate Management Best Practice Principles training course” on November 11 In order to enable employees and executives to have a deeper understanding of laws and regulations related to preventing insider trading. The topics cover: Violation of Integrity-Insider Trading Cases and Insider Trading Prevention Methods for employees. A total of 221 people participated. (Our corporation’s spread of training has reached 100% of our employees based in Taiwan)
To enhance the understanding of laws and regulations pertaining to the prevention of insider trading among employees and executives, we organized the “Preventing Insider Trading Awareness Course” and the “Integrity in Business Employee Education and Training Program”. The content covered examples of integrity violations, particularly providing guidance on preventive measures to insider trading cases. The detailed statistics can be found in the table above. After the completion of the courses, slides were made available on the internal employee system for colleagues to review.
System of Whistleblowing
In order to establish good corporate governance and prevent fraud, bribery, violations of corporate policy and governmental regulations, the company formulated the “Chia Hsin Cement Group Whistleblowing Policy. (檢舉作業要點)” in accordance with the “Corporate Management Best Practice Principles.” This is applicable to the company and its subsidiaries, including internal and external stakeholders.
Whistleblowing Channels and Methods
1.By Phone
+886-2-2551-2317
To prevent verbal omissions or misunderstandings from compromising the acceptance and investigation of cases, the Company may record the contents of phone conversations when deemed necessary and shall ensure that the phone calls are kept strictly confidential.
2.By mail
No. 96, Sec. 2, Zhongshan N. Rd., Zhongshan Dist., Taipei City
(To: Head of the Audit Division, Chia Hsin Cement Corporation)
3.By Email
When reporting by Email, please make sure that the attachments are encrypted to prevent the reported information from being exposed.
※In 2023, Chia Hsin Cement Corporation had not received any internal or external report on violations of laws and regulations.
