Responsible Business Conduct
To ensure that all employees conduct business activities with the highest ethical standards, we have stipulated Ethical Corporate Management Best Practice Principles, Code of Ethics, and Procedures for Ethical Management and Guidelines for Conduct to detail the required ethics and responsibilities for employees in business practices and extensively promote and strengthen the corporate culture of ethics and integrity.
The purpose of stipulating various business codes of conduct/regulations is to prevent occurrence of misconduct. The scope of policy encompasses supplier partners, with which CHT conducts business. All such suppliers are required to abide by ethical standards equivalent to that of the CHT employees. and encourage stakeholders to act in line with integrity and ethics, not for personal gains, and abide by the laws and regulations.
| Category | Description | ||||
|---|---|---|---|---|---|
| Employees |
Promotion and Trainings on the Code of Ethics and Ethical Management
Code of Conduct (CoC) Audit
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| Suppliers |
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To achieve sound ethical corporate management, the chairman of the Company serving as the highest responsible person for Ethical Corporate Management and Anti-Corruption. "The Organization and Talent Development Department" (hereinafter referred as HR Department) shall allocate resources and personnel to formulate ethical corporate management policies and guidelines for conduct, supervise all departments to implement these policies and guidelines. Besides, the top manager who supervises HR Department, Senior Executive Vice President shall report on the execution to the Sustainable Development & Strategy Committee and provide the regular reports to the board of directors regularly (at least once a year) on the implementation results, including training results on business ethics and anti-corruption issues, tracking of relevant risk indicators and the implementation results of the "Anti-Fraud Business Execution Plan", etc.
- There were 70complaints received in 2023, which were all handled and closed in line with pertaining regulations.
- There was no corruption, bribery, discrimination, customer privacy or personal information, conflict of interest, money laundering, insider trading, and other violations specified in the Code of Ethics in 2023.
| Violation Category Violation Category | Count |
|---|---|
| Corruption or Bribery | 0 |
| Discrimination or Harassment | 2* |
| Customer Privacy Data | 0 |
| Conflict of Interest | 0 |
| Money Laundering of Insider Trading | 0 |
*Note: In 2023, there were two harassment cases, both of which were investigated, deliberated, and handled in accordance with the operating regulations and handling principles. Also, gender equality education was strengthened for all employees, and their awareness of conforming to the Code of Conduct was enhanced.
CoC Violation & the Prevention and Corrective Actions
Regarding incidents of Code of Conduct (CoC) violation, we enhance the promotion and communication of the CoC principles in line with the categories of violation incidents via appropriate training occasions and interviews. Meanwhile, reoccurrence of relevant incidents is prevented through interviews, correction of operating procedures, and improvement of internal review/audit mechanisms.
System & Procedures
Chunghwa Telecom has established a quality corporate governance system. With reference to "Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies" stipulated by Taiwan Stock Exchange (TWSE) and Taipei Exchange (TPEx), it formulated "Code of Corporate Governance of Chunghwa Telecom Ltd. Co.," for guidance and compliance.
To become the most valuable and most trust-worthy ICT company, professionals from different areas are invited as the Independent Directors. On one hand, they further improve the corporate governance with their expertise; on the other, they play the role of supervising the Company on behalf of the broader investors in terms of risk management and decent business operation.
Reporting Channels & Protection
We have established a variety of communication and reporting channels to ensure the needs and recommendations of internal and external stakeholders heard and responded by the corresponding units of the Company. In the event of any violation or potential breach of laws or regulations, complaints and reports can be made via relevant channels.
The whistleblower's identity will be rigorously kept in confidence. The whistleblower will not be subject to disciplinary action such as dismissal, demotion or transfer, or salary reduction. An official protection system for anonymous whistleblowers with legal protection is in place.
Internal Audit
The purpose of internal audit is to assist the Board of Directors and managers to check and review the internal control system and evaluate the operation efficiency. The CHT internal audit team answers to the Board of Directors, which conducts internal audits in line with the regulations and system. At the end of each year, based on the results of risk assessment, the audit plan of the coming year is formulated. Upon approval by the Board of Directors after submission thereof, the audit plan is submitted via online information system for the competent authority's reference.
| Item | Description |
|---|---|
| Cross-board memberships | Non-competition Restrictions against the Independent Directors, Chia-Chung Chen, Yi-Chin Tu, and Yu-Fen Lin were lifted on Session 7 of the meeting of the 10th Board of Directors on August 9, 2023. |
| Cross-shareholding with suppliers and other stakeholders |
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| Existence of controlling shareholders | The controlling shareholder of Chunghwa Telecom is the Ministry of Transportation and Communications, with whom there is no conflict of interest that leads to damage to investors' rights. |
| Related parties, their relationships, transactions, and outstanding balances | The disclosure requirement is met by the notes on the related parties in the financial statements in the Annual Report for the Shareholders' Meeting. |
Documents
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Chunghwa Telecom Code of Corporate Governance
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Code of Ethics
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Statement of COC conformity
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Chunghwa Telecom Procedures for Ethical Management and Guidelines for Conduct
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Ethical Corporate Management Best Practice Principles
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Guidelines for Handling Violations of the Code of Conduct of Chunghwa Telecom