Supplier Anti Corruption

Policy aspect

Chunghwa Telecom has formulated a Code of Conduct for Chunghwa Telecom Suppliers to strengthen suppliers' anti-corruption practices, requiring all suppliers to sign and abide by it when winning a bid. As stated in the code of conduct.

When performing business, suppliers shall not directly or indirectly provide, promise, request, or accept any form of improper benefits, including kickbacks, commissions, facilitation payments, or other means to customers, agents, contractors, suppliers, public officials, Personnel or other interested parties _{Note 1} provide or receive improper benefits to establish business relationships or influence business transactions. Suppliers who make direct or indirect donations to political parties, organizations, or individuals involved in political activities must comply with political donation laws and relevant internal operating procedures of the company and must not seek commercial interests or trading advantages. Suppliers should comply with applicable laws and internal operational policies for charitable donations or sponsorships and must not engage in disguised bribery.

Management actions

1. Education and training: Chunghwa Telecom regularly arranges ESG education and training for essential suppliers, emphasizes formulating anti-corruption policies in corporate governance, and publicly discloses and communicates them to all employees.
2. Audit of both parties: Chunghwa Telecom arranges for important suppliers to undergo ESG audits yearly, and anti-corruption policies and actions are included in the audit scope.
3. Procurement terms: If the supplier violates its anti-corruption commitment, Chunghwa Telecom may cancel the supplier's qualification to bid or win the bid, confiscate the bid deposit, performance bond, warranty deposit, terminate or terminate the contract, impose a suspension, and request a hundred percent of the purchase amount in this case—20/20 punitive liquidated damages and damages.

Supplier feedback mechanism

To confirm the implementation of suppliers' anti-corruption policies and feedback on the compliance of the company's employees' behavior, Chunghwa Telecom requires suppliers with more than 5 million transactions to fill out a questionnaire in the Chunghwa Telecom electronic procurement system. In 2023, Chunghwa Telecom sent out 631 questionnaires, and 522 were received, with a response rate of 83%. The questionnaire is aimed at the following:

Note 1: Stakeholders refer to the directors, supervisors, managers, employees, agents, suppliers, contractors, or consultants of the company and group companies and organizations, as well as legal persons or natural persons with substantial control capabilities.