Yuanta Financial Holdings’ Integrity Management Committee is comprised of the heads of the Corporate Planning, Administration, Human Resources, Compliance, and Legal Departments, and is currently chaired by the Company’s Chief Human Resources Officer, who convenes the meetings on a semi-annual basis. In 2017, the Integrity Management Committee met on February 14 and September 30.
Primary Objectives of the Integrity Management Committee
The Integrity Management Committee shall assist the board of directors and Company management in supervising the implementation of operating procedures and preventative measures relating to operational integrity, and shall adhere to legal regulations in the setting of preventive measures against corruption and malfeasance, in order to ensure that the Company is managed in accordance with sound ethical principles.
Integrity Management and Legal Compliance
In its “Integrity Management Guidelines” and “Guidelines
for Conduct”, Yuanta clearly lays out prohibited bad faith behaviors and benefits, along with forbidding the giving or receiving of bribes, provision of illegal political donations, granting of inappropriate charitable gifts or sponsorships, and the provision of unreasonable gifts, entertainment, or other inappropriate benefits. These guidelines also call for regular training, education, and promotion of ethical behavior, as well as appropriate reporting and disciplinary measures.
The Company’s “Integrity Management Guidelines” are closely linked to its internal control standards, and serve to prevent inappropriate actions by Company staff. They ensure that departments adhere to internal controls and operational best practices, including the “Code of Ethics”, “Rules for Board Meetings”, “Audit Committee Organizational Rules”, and the “Standard Procedures for Outside Gifts”. In addition to this, the Audit Department undertakes annual inspections of general operations. In accordance with the “Guidelines
for Conduct”, should any staff member be involved in unethical activity, the responsible unit shall handle the issue according to established procedures and report to the Board of Directors regarding the details of the matter, its handling, and any follow-up improvement measures being taken.
Should the Company encounter outsiders engaging in acts of bad faith and malfeasance, we shall notify the appropriate legal and prosecutorial authorities of the relevant facts; should public sector agencies or civil servants be involved, appropriate governmental anti-corruption organs shall be notified. Moreover, as the involvement of the Company employees in fraud or criminal negligence could potentially lead to damage to company assets and reputation, or to the rights of shareholders, customers, creditors, and any other stakeholders, the Company has not only established relevant rules and standards, but also employee working rules and an effective, appropriate set of internal control standards. Coupled with our legal compliance, risk management, and internal auditing mechanisms, these help ensure that the Company can continue operating effectively and prevent against fraud or serious negligence.
All staff of the Group are subject to both financial regulations and HR management guidelines; should either be breached, appropriate punishment shall be implemented based on the severity of the breach; where a breach of the regulations is found to be severe enough, criminal and civil action shall be taken against the offender in order to protect the rights and interests of the Company and its stakeholders. The Company is committed to the concepts of probity, transparency, and responsibility in its operations, and thus will continue to promote and implement policies founded on integrity, in order to enhance and fulfill the Company’s responsibility to integrity management.
Integrity Management Guidelines
Procedures for Integrity Management and Guidelines for Conduct
Yuanta Financial Holdings has established and publicized an independent reporting mailbox and hotline both on the corporate website and the Company intranet. We encourage internal and external staff to report any acts of bad faith or misconduct, with a bonus offered in line with the severity of the incident. In the event of a false or malicious report by internal staff, the staff member or members concerned would be subject to disciplinary action, and even dismissal should the incident be sufficiently serious. In addition, Yuanta Financial Holdings staff can submit enquiries to legal compliance units in case they have any questions regarding corporate ethics and relevant regulations.
Those staff members designated to investigate any reports shall declare in writing that the identities of both the reporter and the reported will remain confidential, and that the Company is committed to protecting any staff that report violations from improper treatment as a result of their report. Regarding the responsible units for the reporting mechanism, internal reports are handled by the Board of Directors and the Integrity Management Committee, while external reports are handled by the Administrative Management Department, and reports from governmental agencies are handled by the Corporate Planning Department. Each undertakes regular reviews of reporting status and handling procedures, and then reports on measures for improvement to the Board of Directors.
Whistleblowing Procedures for Employees