Sustainable Management

To fulfill corporate responsibility and ensure the rights of shareholders and stakeholders, FENC regards integrity as its highest operating principle to secure sound governance, optimize corporate management and maximize shareholder interests.

Corruption and unethical conducts are detrimental to corporate reputation and stakeholder rights. To minimize the risk of corrupt conducts, FENC established an integrity and anti-corruption system with annual implementation of special projects.

Integrity and Anti-Corruption System

Highest Guiding Principle	Integrity
Code of Conduct	Best Practice Principles of Ethical Corporation Management and Code of Ethics approved by the Board
Scope	Corrupt conducts subject to FENC anti-corruption policy include unlawful conducts that cause embezzlement of corporate assets or infringement of shareholder rights, such as corruption, money laundering, bribery, kickback, commission, facilitating payment, illegal political donation, inappropriate charitable donation, unreasonable presents, improper conduct and unfair trade.
Management System	Conflict of interest stipulated in the Rules of Procedure for Board of Directors – Donations from stakeholders or major donations to non-stakeholders: Rules of Procedure for Board of Directors stipulates that such conduct shall be reported to the Board. The whistle-blowing and disciplinary method of violating ethical conduct and ethical management. Provisions of anti-money laundering measures under Control System on Preventing Economic Sanction from Financing of Terrorism. Remuneration system. Internal control system and provisions governing its implementation, including management policy, authorization system and segregation of duties. Risk assessment mechanism, which applies to dealings with governmental entities. Anti-bribery clauses included in procurement contracts to strictly forbid the acceptance of kickbacks, handling charges or financial gains in any form.
Classification of Report Acceptance Level	According to the identity of the accused, investigation reports are classified and submitted based on the following principles: For personnel at the level of Assistant Manager and above, the report should be submitted to the business unit head. In cases of significant severity, it should be submitted to the General Manager. For personnel at the level of Assistant Vice President and above, the report should be submitted to the General Manager and notified to the Chairman.
Protection Measures of Whistleblower	The identity of the whistleblower, the contents of the report, and the personnel involved in the investigation shall be kept confidential by the company. The whistleblower shall be protected to prevent any adverse actions such as dismissal, removal from position, demotion, salary reduction, or any other disadvantageous treatment due to the act of whistleblowing. If there are suspicions or indications of improper treatment, these should be investigated. If improper treatment is confirmed, appropriate disciplinary actions shall be taken against the responsible parties based on the severity of the situation and in accordance with relevant regulations.
Audit System	Integrity and anti-corruption practice are listed under mandatory audit in the internal audit system. Self Evaluation on Corporate Corruption is conducted quarterly based on the scope of anti-corruption policy. The result is presented to the Board for review to ensure the implementation of the anti-corruption policy. FENC shall conduct investigation in the presence of the likelihood that suppliers and subcontractors, including agents and trade companies, violate integrity practice. Once verified, said company will be removed from FENC’s list of eligible suppliers.
Training and Promotion	A minimum of one anti-corruption training for Board members and all employees to promote the scope of FENC anti-corruption policy and possible effects at the individual and corporate levels. Require corporate ethics in new employee training. Conduct anti-corruption training tailored to procurement units that involve direct interests in procurement projects. Prior to being included in FENC’s list of eligible suppliers or engaging in business transactions with FENC, suppliers and subcontractors, including agents and trade companies, must undergo anti-corruption training or education. Internal publication, meetings, signage at the plants.

⇥ Articles of Incorporation
⇥ Corporate Governance Principles
⇥ Best Practice Principles of Ethical Corporation Management
⇥ Code of Ethics
⇥ Whistle-blowing and Disciplinary Method of Violating Ethical Conduct and Ethical Management (Chinese)
⇥ Legal Compliance Execution Report (Chinese)

2022 Implementation

The Whistle-blowing and Disciplinary Method of Violating Ethical Conduct and Ethical Management went into effect in January 2022. Under its provisions, anonymous grievance claims are accepted to protect the rights of the claimants.

2022 Results

There were no incidences of corrupt conducts at FENC.
All Board members completed the anti-corruption training, representing 100% in completion.
All new recruits in 2022 signed the declarations to commit to FENC’s Best Practice Principles of Ethical Corporation Management and Code of Ethics, representing 100% in completion, 240 in total. Promising to abide by the Company's Code of Ethics, and not to provide, promise, request or accept any improper benefits in the process of engaging in business conduct, or to engage in other dishonest acts that violate integrity, illegality, or breach of fiduciary obligations, and actively implement the Company's Principles of Ethical Corporate Management and related regulations.
Reach 90% coverage in anti-corruption training among all permanent FENC employees.
Provide anti-corruption promotion or training to 5,593 suppliers and contractors, including agents and traders, which represents 85% coverage.

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