Policy and governance environment
Requirements of Morality and Ethics and Future Planning
Execution Situation
＊The Legal Affairs Office is responsible for promoting the Company’s ethical corporate management and regular reporting of the implementation results to the board of directors. The most recent report to the Board of Directors on January 19, 2024 was on the policies, plans and implementation of honest management (including the commitment of the Board of Directors and the management to actively implement the management policies)
＊Senior management of directors and managers all managed their businesses from objective perspectives, and refrained from allowing themselves, spouse, parents, children or relatives within 3rd degree of kinship to gain illegitimate interests because of positions they hold in the Company. To promote and prevent unethical behavior, Formosan Union Chemical Corporation specifically retains external experts, for the benefits of Board members, to the Company to offer courses related corporate governance and securities regulations.
＊After Formosan Union Chemical Corporation’s review in 2023, contents of Formosan Union Group’s engineering contracts and waste disposal processing contracts had all prescribed ethical clause. Planning for short-term goal is set at 100% prescription of ethical clause in engineering contracts and waste disposal processing contracts. As for the long-term goal, ethical clause and report mailbox will both be prescribed in Formosan Union Chemical Corporation’s various contracts, and report situation will be closely monitored for the purpose of ensuring fulfillment in ethical management policy.
Formosan Union Chemical Corporation is engaged in commercial activities based on principles of fairness,honesty, trustworthiness and transparency. To fulfill ethical management policy and to actively prevent unethical behavior,“ Formosan Union Chemical Corporation Ethical Management Operation Procedure and Code of Conduct” has been established in accordance with“ Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies” to specifically regulate matters to which the Company’s director, manager, employee and individual with substantial control capability shall pay attention when executing businesses. In the meantime, for the purpose of preventing insider trading, the Board of Directors Meeting has passed“Handling Operation Process for Formosan Union Chemical Corporation’s Internal Material Information” to further solidify prevention of insider trading.
Formosan Union Chemical Corporation has also established diversified report channels in the Company’s official website to allow internal and external stakeholders to express their opinions on Formosan Union Chemical Corporation’s involvement in regulation compliance issues. Meanwhile, for the purpose of enhancement on report mechanism, Formosan Union Chemical Corporation incorporated“ Whistleblower Protection Clause” into its Guidelines for Report System expecting to protect whistleblower’s identity and related rights.
Additionally, Formosan Union Chemical Corporation has established separate Guidelines of Ethical Requirements for senior management of director and manager as well as for employees for compliance accordingly.
Through establishment of dual control mechanisms of Ethical Management Operation Procedures and Guidelines of Ethical Requirements, a sound ethical management environment has therefore been built up for Formosan Union Chemical Corporation accordingly.
