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:Pursue zero non-conformity. Anti-corruption publicity, education,
and training activities for suppliers, with a completion rate of 100%. Education and training on business ethics and legal compliance, with a completion rate of 100%.

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 “Ethics and Integrity Team” under the board of directors 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 and training for related personnel to practice “Sincerity and Trustworthiness” in the routine business activities.

Supplier Business Ethics

Suppliers play an important role in realizing business ethics and legal compliance. Therefore, we request suppliers to sign the “Supplier’s Code of Conduct, Ethical Management, and Non-Disclosure Undertaking” while undertaking CLC’s construction contracts and procurement contracts. In addition, we make face-to-face communication with suppliers at the supplier conference and supplier visit to disseminate to them the importance of maintaining high-standard business ethics for them to accept 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 in 2020 to strengthen the legal compliance concepts of employees. With case studies, the legal unit helps employees to understand related legal matters in routine business activities or daily life.

In legal compliance, no material fine in 2020 (single event with administrative fines accumulated up to NT$1 million) was reported. Please refer to p. 99, 102 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 2020

Ethics and Integrity Team reported to the board of directors on the implementation of 2020 on On December 24 as follows:

1. CLC held nine talks on the “Procedures for Ethical Management and Guidelines for Conduct” at CLC mills and plants across Taiwan, with participation of 301 seed staff.  We also collected a total of 3,125 copies of the “Business Ethics and Legal Compliance Undertaking” from domestic employees, with an achievement rate of 91.7%.
2. Established the “Regulations for Prevention of Insider Trading” and disseminated it to all directors and senior management members, with 15 participants.
3. Communicated CLC’s ethical management policy and related laws and regulations to all directors and senior managements, and 15 of them signed the “Ethical Management Policy Statement.”
4. Established the “Supplier’s Code of Conduct, Ethical Management, and Non-Disclosure Undertaking” and requested suppliers to perform related CSR terms. We disseminated the undertaking at the 2020 supplier conference and requested all suppliers to sign it from 2021.