Governance
Integrity Management
Alltek understands that using corrupt and unethical means to conduct operations can damage the company’s reputation and cause losses to many stakeholders. Only by basing our operations on integrity can we create competitive advantages for sustainable development. We implement the “Ethical Corporate Management Best Practice Principles,” “Code of Ethical Conduct,” “Procedures for Handling Material Inside Information and Procedures for Management of Prevention of Insider Trading,” and have established the “Reporting System for Unlawful Conduct” to strictly prevent dishonest behavior. The General Manager’s Office reports on the performance of integrity governance to the Board of Directors at least once a year.
Ethical Values and Behavioral Standards
To emphasize the integrity of business management and to improve the management of “Ethical Corporate Management Best Practice Principles,” the President’s Office is responsible for the establishment and supervision of the implementation of the policies on ethical business management and the plans for unethical conducts. Implement transparent information, respect intellectual property rights, protect the privacy of each business partner, uphold a responsible attitude in procurement, establish a variety of communication channels and whistle-blowing mechanisms, and establish a special “Reporting System for Unlawful Conduct” to prevent fraud, maintain company reputation, and conduct unethical and unethical practices. In addition, in order to ensure that the behaviors of the Company’s directors, supervisors, managers, and other employees comply with ethical standards, and to enable the Company’s stakeholders to better understand the Company’s ethical standards, the “Code of Ethical Conduct” has been established to require all directors, supervisors, Managers and other employees are required to abide by laws and ethical standards when carrying out related business activities.
- Alltek’s Moral Value
|
Prevention of conflict of interest |
Employees shall not use his/her position to improperly benefit their immediate blood relatives |
| Avoidance of opportunities for personal gain | Avoid the use of company property and information for personal gain or the convenience of one’s position |
| Confidentiality duty | Absolute confidentiality of the information of the Company or its purchase (sale) customers |
| Fair trade | The employees shall not obtain improper benefits through manipulation, concealment, misuse of information gained from carrying out duties, or make misstatements on material matters or conduct other unfair trade practices. |
| Protection and proper use of company assets | Use company assets legally and effectively to prevent theft, negligence or waste. |
- Reporting System for Unlawful Conduct
- Alltek strictly prohibits the following unlawful behaviors
| Embezzlement of public funds | Fraudulent claim of public expenses | Illegal use of company assets | Illegal embezzlement of company assets |
| Receiving kickbacks | Having dealings with stakeholders by taking advantage of their positions | Accepting of improper benefits | Dishonest and unethical conduct |
| Leaking trade secrets | Leaking vendor and customer information | Illegal act | Damage to the Company’s reputation |
- Insider Trading Prevention Mechanism
To prevent insider trading, avoid improper leakage of information, and ensure the consistency and correctness of the information released to the outside world, we have established the “Procedures for Handling Material Inside Information and Procedures for Management of Prevention of Insider Trading.” The Company’s directors, supervisors, managers, and employees are subject to these Procedures, stipulating that persons who has knowledge of material information shall not disclose it to others, nor shall he/she inquire or collect material information about the Company not yet released that is not related to his/her personal duties, in order to implement insider trading prevention and management operations.
Anti-Corruption Policy and Communication Procedures
The President’s Office is responsible for formulating and supervising the implementation of the ethical corporate management policy and the unethical conduct plan. The implementation status is reported to the Board of Directors at least once a year. Through the establishment of good corporate governance and risk control mechanisms, we aim to create a business environment for sustainability. The Company’s Board of Directors and the management have declared in various public occasions that they will uphold the principle of ethical corporate management to run the operations of the Company. The Company has not formally assessed the risk of corruption of each operating location, we have disclosed the “Ethical Corporate Management Best Practice Principles,”and“Code of Ethical Conduct,”related to anti-corruption on the Alltek official website’s “Code of Ethical Conduct” section. We require every employee to sign an “Integrity and Honesty Commitment” and conduct integrity advocacy on the internal website to ensure that everyone understands the relevant agreements and rules.
- Overview of the “Anti-Corruption” training course attended by supervisory staff in 2023
| Participants | Number of participants | Total training hours | Training percentage |
| Supervisory position | 37 | 37 | 15.3% |
Note: Training percentage = Number of trained individuals / Total number of employees for the year.
- Integrity and Honesty Commitment
- Overview of the “Anti-Corruption” training course attended by board members in 2023
| Participants | Total Number of Board Members | Number of participants | Total training hours | Training percentage |
| Members of the Board of Directors | 7 | 7 | 24 | 100% |
| “Anti-Corruption” Course title/content | Course hours/sessions | Method of training/advocacy |
| Legal Compliance Briefing for Insider Trading of Equity | 3 hours | Seminar |
| Insider Trading Prevention Seminar | 3 hours | Seminar |
| Rules for the Execution of Duties by Directors, Supervisors, and Business Judgments | 3 hours | Training |
Compliance
The Company conducts internal audits to ensure that all business units comply with applicable laws and regulations, such as the Company Act, Securities and Exchange Act, regulations governing TWSE/TPEx-listed companies, or other laws and regulations governing business activities. This is the basic premise of ethical corporate management. The Company’s external donation or sponsorship is handled in accordance with the relevant laws and regulations as well as the Company’s internal rules to prevent the occurrence of bribery, acceptance of bribes, and illegal political donation. Through internal control and internal audit systems, we control governance-related malpractices and risks. The establishment and implementation of the system are directly under the board of directors, responsible for inspecting the internal control system. If any deficiencies or abnormalities are found, they are tracked until improvements are made.
In 2023, the company had no significant negative news. There were no incidents of corruption, bribery, or extortion by employees or suppliers, and no penalties or major legal or non-legal actions.
- Compliance with product trade laws and regulations
In response to the requirements of the “Bureau of Foreign Trade” on the management of the export of strategic high-tech goods and related regulations, the Alltek has formulated the “Procedures for Export of Strategic High-tech Commodities” to ensure that all transactions with overseas customers comply with the internal export or control policies of the Company, and filter all orders according to the latest list of rejected customers.
Beginning in 2021, Alltek has followed its “Procurement Management Procedures” and “Sales Procedures” and requires sales personnel and product planning personnel to negotiate with customers or suppliers for the addition or change of trade terms. The applicant must fill out the “Trade Terms Application Form” and follow the approval process to obtain the approval of the authorized supervisors before shipping or placing an order to ensure the subsequent fulfillment of various customs declaration obligations.
For the first-time collaboration with supply chain partners, Alltek conducts qualification reviews through the “New Supplier Evaluation Form.” Suppliers who have obtained “Authorized Economic Operator (AEO)” certification or equivalent qualifications will be given priority in Alltek’s list of qualified suppliers.
- Enforcement of intellectual property
At Alltek, we attach great importance to information security and comply with laws and regulations. Professional ethics is our commitment to the employees and stakeholders. Ensuring that confidential information and customer privacy are respected is also a Company’s competitive advantage. We adhere to the principle of business integrity. Restrictions and regulations on various types of intellectual property rights and copyrights have always been ones of our priorities. In order to implement the intellectual property policy, the specific implementation measures within the Company and the stakeholders are as follows:
| 1. All employees must sign the “Employment and Intellectual Property Confidentiality Declaration Form” when joining the Company. According to the law, they must undertake the obligation of confidentiality regarding the Company’s intellectual property rights, copyrights, and business secrets during the tenure until after they resign. |
| 2. The Company continues to publicize information security concepts and educate employees on information security concepts such as respect for intellectual property rights and the correct use of legally authorized software through quarterly company meetings and the Enterprise Information Portal (EIP). By doing this, we are able to ensure that employees can properly use legally authorized software and avoid infringement of rights due to misuse of unauthorized software, further protecting the Company’s Information security. |
| 3. When using cloud-based digital services such as Microsoft 365 and Teams, the Company implements two-factor authentication for all login accounts to enhance information security protection and prevent information security risks from password theft. |
| 4. Achieving the compliance of intellectual property, trade secrets, and information security management with customers by signing non-disclosure agreements. |
| 5. All intellectual property works produced are properly stored in the Company’s information system and maintained and used continuously. For example: online training courses for new employees, audio and video courses of professional practice seminars, information system user manuals, and corporate sustainability reports.Gradually promote the inclusion of relevant documents and archives into the DMS document management system. |
| 6.As of October 31, 2023, the outcomes of the Company’s trademarks and patents are as follows:
Registered trademarks: 5. Patent: One utility patent has been approved. |
| 7.The Company reports the implementation of intellectual property management to the Board of Directors once a year. The latest report was submitted on November 7, 2023, to ensure that the operation and effectiveness of intellectual property management meet the Company’s expectations and plans, and to establish a continuous improvement mechanism. |