Ethical Corporate and Anticorruption
Yulon Motor adheres to the business principles of integrity, transparency and accountability and has adopted various policies and regulations oriented on ethics, such as the“ Ethical Corporate Management Best-Practice Principles,” the“ Operating Procedures for Processing Internal Material Information” and the“ Operating Procedures for the Prevention of Insider Trading.” Employees are required to subscribe to these policies and regulations while Yulon Motor regularly conducts internal and external audits and compliance examinations and participates in various evaluations to curb any possibility of corruption.
To create an environment of fair competition, the Company’s operations and activities are all in compliance with relevant regulations
Creation of an ethical business culture
Yulon Motor believes that creating an ethical business culture leads to consistency in a corporate and shapes a stauncher business system of the Group. As new directors were elected at the shareholders’ meeting in 2022, besides making the Operating Procedures for the Prevention of Insider Trading known to all new directors and having all directors sign the non-disclosure agreement, we have also had all new directors sign the three declarations for the abidance by the“ Corporate Governance Best-Practice Principles,” the“ Sustainable Development Best-Practice Principles” and the“ Ethical Corporate Management Best-Practice Principles.” Meanwhile, all of the three presidents of the subsidiaries overseas appointed at the end of 2022 have also signed the“ Code of Ethical Services.” As for employee anti-corruption management, we have the“ Operating Procedures for the Prevention of Insider Trading” published on our company website for downloading by all users and as a promotion to all employees where the coverage rate has reached 100% of all employees (1,155/1,155). Yulon Motor pays attention to the anti-corruption training for employees and had organized the“ Insider Trading 101” course for all new employees since 2022 where 100% of new employees have taken the anti-corruption training, representing 4.8% (55/1,155) of the total number of employees. Conditions in connection with the“ Ethical Corporate Management Best-Practice Principles for TWSE/TPEx Listed Companies” have also been added to the sales contract sample and/or contractor agreements for supplier management.
With respect to anti-bribery, Yulon Motor has adopted the“ Yulon Motor Regulations Governing Accepting and Offering Gifts,” which explicitly state the details such the limit of total gift value and the internal reporting procedures to ensure all of Yulon Motor’s employees do not accept requests or agreement in any form and do not receive any bribery or other improper benefits. In the event of doubtful behaviors or behaviors violating the code of conduct, a report shall be made to the supervisor or directly to the internal audit officer, or via the whistleblowing system. At the same time, we also care about the safeguard of intellectual property rights, so we educate new employees about the idea during the orientation and require them to sign the“ Intellectual Property Non-Disclosure Agreement.” In 2022, all of the 47 new employees signed the agreements.
Relevant education and training for ethical management and legal compliance
Whistleblowing system and confidentiality
We have adopted the“ Work Rules” and the“ Regulations for Handling Employee Grievances” to prevent any violation of laws or corruption.“ I have something to say” is an anonymous reporting system inside the Company providing employees a channel to give suggestions or report a grievance by completing a reporting form on the system. We have also built a whistleblowing system via the Audit Office hotline. For any violations that have been confirmed after an investigation of the Grievance Committee, the applicable work rules come into play. If necessary, we will seek damages through legal proceedings to protect the Company’s reputation and rights.
Each grievance or whistleblowing event is handled by dedicated personnel or units, and the internal independent whistleblowing mailbox is managed by independent directors where independent directors can assign the in-charge unit and the recording and storage of the acceptance, investigation process, result and preparation of related documents for each whistleblowing case. There are relevant measures set up to keep the identity of whistleblowers and the reporting content confidential ensuring accessibility of the reporting channel and protecting the whistleblowers from suffering any consequence of reporting an incident. In 2022, we receive one incident report from a subsidiary, in which, an employee of the subsidiary reported that a transaction counterparty of the said subsidiary is a relative of the senior executive. Such a relationship was confirmed after the investigation, and purchases from the said supplier were suspended while the concerned senior executive resigned.
Methods for whistleblowing and grievance
Audit Office hotline:037-878551
Mailbox for whistleblowing:2201_999@yulon-motor.com.tw
have something to say (employee feedback system)
