Policy Aspect

Chunghwa Telecom has formulated the Chunghwa Telecom Supplier Code of Conduct to strengthen suppliers’ anti-corruption practices. All suppliers are required to sign and abide by it to ensure that they maintain high standards of integrity and transparency in business dealings. The Code of Conduct specifies: 

• 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 or from customers, agents, contractors, suppliers, public officials, or other interested parties (note) 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 shall comply with the Political Donations Act and the Company’s relevant internal operating procedures and must not seek commercial interests or trading advantages. Suppliers shall comply with applicable laws and internal operating procedures for charitable donations or sponsorships and must not engage in disguised bribery.

Management Actions

• Education and training: ESG education and training is regularly arranged for significant suppliers. In the governance section, suppliers are encouraged to formulate anti-corruption policies as well as publicly disclose and communicate such policies to all employees.
• Second-party audits: Significant suppliers are arranged to undergo annual ESG audits, with anti-corruption policies and practices included in the audit scope.
• All suppliers complete the Supplier ESG Self-Assessment Form, which covers whether they have formulated business ethics guidelines, codes of conduct, and anti-corruption policies; promoted and implemented integrity management education and training; maintained open and transparent information; and had any significant violations of economic or social regulations in the most recent year, including but not limited to accounting and tax fraud, money laundering, corruption, bribery, labor and human rights, anti-competition and antitrust behaviors, and significant violations related to products and services, thereby reducing Chunghwa Telecom's procurement risks.
• Procurement terms and conditions: If a supplier violates the anti-corruption commitment, Chunghwa Telecom may revoke the supplier's bidding or successful tender qualification, forfeit bid bonds, performance bonds, and warranty bonds, terminate or rescind the contract, impose suspension, and claim punitive penalties of 20% of the procurement amount as well as damages.