Corporate Governance

Corporate Governance

Corporate Governance

Ethical Management

● Strategy: Based on the business philosophy of "Sincerity and Trustworthiness," we emphasize steady and ethical operations, legal compliance, and governance to eliminate unethical and unlawful behavior. We also establish regulations, arrange education, training, and awareness education; and provide reporting channels and protection to engrain business ethics in our corporate culture.

● Goals of 2030: Education and training on business ethics and legal compliance, with a completion rate of 100%,
Constantly arrange anti-corruption publicity, education, and training activities for suppliers, with a completion rate of 100%  Pursue zero non-conformity

Emphasizing steady and ethical operations, legal compliance, and governance, we have been conducting business activities with the highest standard of ethics and integrity since our inception. In addition, through the regulation establishment, education and training, consistent implementation, self-assessment and review, and unfettered reporting channels, we request compliance by all CLC members.

We have established the "Corporate Governance and Ethics and Integrity Team" under ESG Committee to take charge of business ethics and integrity. The team operates according to the "Procedures for Ethical Management and Guidelines for Conduct" and periodically report its performance to the board of directors. "Sincerity and Trustworthiness" is CLC's core value and the important standard of employee conduct. To ensure all employees practice legal compliance, apart from strictly requesting employees to uphold integrity and fairness, avoid conflicts and interest, protect corporate assets, fulfill the non-disclosure obligation for customers in business operations, we provide channels for reporting unlawful or unethical behavior and arrange education (also for new employees) and training for related personnel to practice "Sincerity and Trustworthiness" in the routine business activities.

Supplier Business Ethics

We request all major and new suppliers to sign the "Supplier's Code of Conduct" while undertaking CLC's construction contracts and procurement contracts, with a total of 100 suppliers in 2022. In addition, we make communication with suppliers at the supplier ESG conference and supplier visit to promote CLC's code of business ethics and legal compliance.

Legal Performance

Implementing various business activities through legal compliance and compliance with the Code of Ethical Conduct is the basic business philosophy of the CLC. By establishing related work rules and regulations, we request employees to abide by and practice them. In addition, we enhance their dissemination through education and training, corporate website, internal publications, and meetings. Besides understanding and capturing the status of legal compliance of all units, the legal unit published three legal articles, such as Power and Rights, Cracking Down on Criminal Networks, Workplace Unlawful Harassment Topic, and so on in 2023 to strengthen the legal compliance concepts of employees. With case studies, the legal unit helps employees understand related legal matters in routine business activities or daily life.

In legal compliance, no material fine in 2022 (single event with administrative fines accumulated up to NT$1 million) was reported. Please refer to P. 72-73 of the annual report for details regarding other fines for violation (Labor Standards Act, Occupational Safety and Health Act, and environmental protection laws and regulations) and improvement action.

Performance in Ethical Management Promotion in 2023

1. Revised the "Regulations for Prevention of Insider Trading" and established the "Regulations for No Stock Trading of Directors before Publication of Financial Statements." Apart from notifying all directors, we also informed the senior management that no stock transaction is allowed during the accounting closing period to prevent directors and officers from unintentionally violating those regulations.

2. The anti-corruption reporting channel of "Dealing with Dishonest Behavior of Company Personnel" has not received any corruption-related reporting cases in 2023.