*Note: In 2024, 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.

Whistleblowing Mechanism

Dedicated department responsible for the whistleblowing mechanism

Provision of training on the use of reporting channel

All employees at the Company, including part-time and fixed-term contract personnel, are required to complete training courses related to the Ethical Corporate Management Best Practice Principles of Chunghwa Telecom and the Code of Conduct. The training encompasses: whistleblowing mechanisms, the right to anonymous reporting, confidentiality obligations, Zero tolerance Policy, and the reporting procedures, which are also integrated with the Ethical Corporate Management Best Practice Principles, Code of Conduct, as well as pertaining internal control systems and regulations.

The courses are delivered via an e-learning platform, incorporating practical case studies and post-course assessments to strengthen employees' knowledge of their reporting rights and responsibilities, ensuring all employees fully comprehend and can effectively utilize the whistleblowing channels, so as to collectively uphold the culture of integrity, transparency, and legal compliance at the Company.

Disclosure on the process for investigating the reported breaches

A formal investigation process will be initiated at the Company for any reported violations of the Code of Conduct based on the nature and content of the case. A dedicated unit shall undertake fact check and reporting in a thorough and timely manner. The investigation process explicitly outlines each handling stage and the respective responsible units. Also, standardized procedures have been established to facilitate the execution and internal control audits.

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.