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    Airtac International Group
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  • Fulfillment of Ethical Corporate Management 

    1. Establishment of Ethical Corporate Management Policies and Programs

    (1) Does the company have a Board-approved ethical corporate management policy and stated in its regulations and external correspondence the ethical corporate management policy and practices, as well as the active commitment of the Board of Directors and management towards enforcement of such policy?

    Abstract Illustration:

    ·     The company established the “Ethical Corporate Management Best Practice Principles” following approval at the meeting of the Board on November 4, 2013, and these Principles were revised following approval at the meeting of the Board on March 12, 2020 to stipulate that directors and managers shall exercise due care of good administrators when carrying out business duties, rigorously execute their duties, and implement the commitments of ethical management policies. The internal audit department is responsible for supervision annually.

    (2) Does the company establish assessment mechanisms against risks from unethical conduct, periodically analyze and assess operational activities with high potential for unethical conduct, and use these to establish solutions for prevention of unethical behaviors that at least encompass the preventive measures stated in Article 2, Paragraph 7 of the Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies?

    Abstract Illustration:

    ·     In addition to our “Employee’s Handbook” and “Ethical Corporate Management Best Practice Principles” we have also established “Regulation of Whistle-Blowing System for Unlawful, Unethical Conduct and Dishonesty Behavior ”to provide clear and detailed guidelines for operating procedures, behaviors, education and training, disciplinary violations, and appeals systems. The formulation and implementation of integrity management policies are overseen by our audit department, which periodically reports to the Board.

    (3) Does the company establish policies to prevent unethical conduct with clear statements regarding relevant procedures, guidelines of conduct, punishment for violation, rules of appeal, and commitment to implement the policies, and periodically assess said policies?

    Abstract Illustration:

    ·     The Company’s “Ethical Corporate Management Best Practice Principles” and “Employee’s Handbook” has clearly specified the punishments against law breaking, offering and accepting bribes, offering or accepting unreasonable gifts or hospitality, or other inappropriate benefits with clear channels of appeal, and trainings of related principles are carried out for employees.

     

    2. Fulfillment of Operations Integrity Policy

    (1) Does the company evaluate business partners' ethical records and include ethics-related clauses in business contracts?

    Abstract Illustration:

    ·     The Company has set Supplier Management Measures, if there are any doubts about the credibility of the supplier, cannot make purchases. The Company’s Supplier Agreement states that all suppliers shall not offer bribes to the employees of the Company. The Company will pursue responsibilities and terminate the business relationship with the bribing supplier.

    (2) Does the company establish an exclusively (or concurrently) dedicated unit in charge of corporate integrity and to be supervised by the Board, which regularly (at least once a year) reports implementation status to the Board?

    Abstract Illustration:

    ·     The Company's general manager's office plans to promote the establishment of integrity management policies and plans to prevent dishonesty, and the internal auditor will supervise the implementation of the situation, and regularly report the implementation to the board of directors. The latest date of submission to the board of directors is November 8, 2024.

    (3) Does the company establish and implement policies to prevent conflicts of interest and provide appropriate communication channels?

    Abstract Illustration:

    ·     The Company's “Employee Handbook” requires relevant personnel not to benefit themselves, prevent conflicts of interest. Use various meetings to communicate and convey the entrepreneurial spirit of integrity management. The Corporation has also established “Regulation of Whistle-Blowing System for Unlawful, Unethical Conduct and Dishonesty Behavior” to provide timely and appropriate channels for making statements and reports to prevent conflicts of interest.

    (4) Has the company established effective systems for both accounting and internal control to facilitate ethical corporate management, with internal audit units formulating audit plans based on risk assessments of unethical conduct which are used to review compliance with measures for preventing unethical conduct, or which are audited by CPAs?

    Abstract Illustration:

    ·     In order to implement ethical management, regulation compliance at the Corporation is periodically reviewed by internal auditing, accounting, and internal control systems.

    ·     The Corporation implements internal control mechanisms on an annual basis, which is audited by the internal audit department, and CPAs are responsible for issuing review reports on internal control systems as necessary.

    ·     The accounting system at Airtac has been effectively implemented for many years. Every year, certified accountants conduct an audit and issue an audit report.

    ·     The Corporation's “Ethical Corporate Management Best Practice Principles” stipulate that internal audit units should formulate audit plans based on risk assessments of unethical conduct which can be used to review compliance with measures for preventing unethical conduct, and which may be audited by CPAs. Assistance may be obtained from professionals when necessary.

    (5) Does the company regularly hold internal and external educational trainings on operational integrity?

    Abstract Illustration:

    ·     The company has developed an Employee Handbook that requires employee integrity, and is listed as employee induction and on-the-job training content. AirTAC Taiwan hold a total of 1 employee meetings in 2024, with a total of 954 people, to publicize important regulations such as the integrity management code.

     

    3. Operation of the Integrity Channel

    (1) Does the company establish both a reward/punishment system and an integrity hotline? Can the accused be reached by an appropriate person for follow-up?

    Abstract Illustration:

    ·     The reporting channels include mailboxes and internal communication software for employee complaints to senior managers (e.g. CEO, GM of each subsidiary). If any violation is found, the responsible department will conduct investigation with punishment being meted in accordance with the severity of the offense.

    (2) Does the company establish standard operating procedures and subsequent procedures of following investigations and relevant confidential mechanism?

    Abstract Illustration:

    ·     The Corporation's “Regulation of Whistle-Blowing System for Unlawful, Unethical Conduct and Dishonesty Behavior.” have clear stipulations on the appeals process and reviewing units, and commit to confidentiality for appeal makers and related evidence. In 2024, there were no cases involving dishonesty.

    (3) Does the company provide proper whistleblower protection?

    Abstract Illustration:

    ·     The Company has adopted measures for protecting whistle-blowers from inappropriate disciplinary actions due to their whistle-blowing.

     

    4. Enhancing Information Disclosure Does the company discloses its ethical corporate management policies and the results of its implementation on the company's website and MOPS?

    (1) Does the company establish both a reward/punishment system and an integrity hotline? Can the accused be reached by an appropriate person for follow-up?

    Abstract Illustration:

    ·     The Company’s business culture, operating policies are posted on the Company’s website and are duly updated; Disclosing related information on ethical corporate management on the Company’s website.

     

    5. Other

    (1) If the company has established the ethical corporate management policies based on the Ethical Corporate Management Best-Practice Principles for TWSE/TPEx Listed Companies, please describe any discrepancy between the policies and their implementation:

    None

    (2) Signing of the Statement of Compliance with the Integrity Management Policy: All directors and senior executives of the Company have completed the signing of the Statement of Compliance with the Integrity Management Policy in order to actively implement the commitment to the Integrity Management Policy.

    (3) Other important information to facilitate a better understanding of the company's ethical corporate management policies (e.g., review and amend its policies).

    ·     The Handbook for the Meeting of Board of Directors of the Company states if any director is an interested party with respect to any agenda item, the director shall state the important aspects of the interested party relationship at the respective meeting. When the relationship is likely to prejudice the interests of the company, the director may not participate in discussion or voting on that agenda item, and further, shall enter recusal during discussion and voting on that item and may not act as another director's proxy to exercise voting rights on that matter.

    ·     The Company’s “Rules of Business Integrity” has been implemented after the Board of Directors through the implementation, any amendments thereto in the same fashion.

    ·     The company conducts risk assessments on corruption-related matters for the operating activities of its main operating bases. Through the local management units will conduct annual self-inspection and self-assessment of compliance with laws and regulations, to achieve effective control and implementation. It is regularly audited independently by the audit unit to ensure the operation of the overall mechanism, and to jointly manage and prevent the occurrence of dishonest behavior. There were no cases of corruption or anti-competitive conduct in 2024.