Ethical Management

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 Conduct, and Procedures for Ethical Operation and Guidelines for Conducts 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 the Code of Conduct of Chunghwa Telecom is to prevent occurrence of misconduct and encourage stakeholders to act in line with integrity and ethics, not for personal gains, and abide by the laws and regulations. Also, the stakeholders conducting business with Chunghwa Telecom are encouraged to abide by ethical standards equivalent to that of the CHT employees.

To strengthen the ethical management, allocate resources and personnel, the Organization and Talent Development Department is responsible for assisting the Board of Directors and the management in the stipulation, supervision, and execution of the ethical management policies and guidelines for conduct, which is to report to the Board of Directors regularly (at least once a year). Also, the Chief Administrative Officer (CAO) is responsible for the supervision and oversight of issues concerning business ethics and corruption. Regarding business ethics and anti-corruption issues,the Organization and Talent Development Department is responsible for arranging the training activities every year, creating risk control indicators, implementing the " Anti-Fraud Execution Plan",and also tracking and summarizing headquarter and branch offices implementation statuses, reporting at the business ethics and anti-corruption management meeting hosted by CAO regularly to monitor the implementation effectiveness.

• There were 74 complaints received in 2022, which were all handled and closed in line with pertaining regulations.
• There was no corruption, bribery, discrimination, harassment, customer privacy or personal information, conflict of interest, money laundering, insider trading, and other violations specified in the Code of Conduct in 2022.
• Other cases (e.g. violation of attendance regulations or discipline at work) were investigated, deliberated, and handled in line with operating regulations and handling principles, followed by enhanced promotion to all employees to strengthen their awareness of compliance with the Code of Conduct.

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.

Chunghwa Telecom sticks to political neutrality and avoids utilization of internal funds, workforce, facilities, or other resources of the Company out of political agenda.

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. The internal audit and internal control mechanisms of Chunghwa Telecom have been audited and stated in the financial report by CPA.

• Chunghwa Telecom Code of Corporate Governance.pdf 
• Chunghwa Telecom Code of Ethics.pdf 
• Chunghwa Telecom Ethical Corporate Management Best Practice Principles.pdf
• Statement of COC conformity.pdf 
• Chunghwa Telecom Guidelines for Handling Violations of the Code of Conduct.pdf 
• Chunghwa Telecom Procedures for Ethical Management and Guidelines for Conduct.pdf