Target

Compliance Detail and Number of Control Points

Shareholder

Customer and Competitor

Fair trade (5), import/export (8)

Corporate Asset

Employee

Labor condition (59), welfare and insurance (28), labor relations (33), labor retirement (23), health and safety (69)

Society

Corporate corruption (18), political donation (8)

Environment

Category

Focus

Task

2023 Performance

Establish Communication

• A clear and adequate system for the conveyance, consultation, coordination and reporting of regulatory information was established.
• The SOP and grievance mechanisms for violations were established, including the email for reporting regulatory compliance issues and for the Audit Committee and Audit Department.

• Designate regulatory compliance personnel.
• Report violations and penalty immediately.

• The compliance staff from all departments report monthly on violations and penalty.
• No grievance claims were filed in 2022.

Regulatory Update

• Track the latest regulatory amendments and updates on a regular basis and convey the changes to all units immediately.
• Provide advanced risk alert on violations for all units.

• Convey the latest regulatory changes to applicable units and personnel.
• Update Company regulations in accordance with regulatory changes.

• Develop robotic process automation (RPA), which extracts regulatory updates daily from the Executive Yuan Gazette Online and the Financial Supervisory Commission, and weekly from sources related to the economy, health and safety, labor affairs and fire safety. The updates are sent to applicable personnel immediately.
• Amended the FENC  Audit Committee Charter, Meeting Rules of Board of Directors and Corporate Governance Principles to align with regulatory amendments.
• Established the Rules Governing Financial and Business Matters Between FENC and Its Related Parties.
• Established the contract clause that stipulates supplier information security to ensure robust information security management and reviewed information security regulations governing procurement operations to ensure compliance with the Cyber Security Management Act  during supplier selection and monitoring.
• Established the Record and Document Retention Policy for the U.S. subsidiaries to stipulate the retention period, custodian and record update in accordance with the law.

Regulatory Training

• Publish information on regulatory enactment, case studies and regulatory education.
• Conduct training on key regulatory amendments.
• Provide in-person and online training on regulatory compliance for new employees (intellectual property/copyright/Criminal Code and corporate corruption/labor conditions/trade secret).

• Designate appropriate staff to undergo training.

• Conducted Basic Intellectual Property Training for Responsible Personnel on July 3, 2023.
• Conducted the training, Manager’s Guide to Protecting Gender Equality, on August 29, August 31, and September 5, 2023 for managers at the levels of senior vice president, manager/deputy manager and section chief.
• Shared the case study of a major fire incident in Taiwan as well as regulatory violations with FENC production sites in October 2023.

Compliance Evaluation

• Implementation of regulatory compliance was reported to the Board quarterly.
• Self-evaluation checklists were established targeting the regulatory control points.
• The Legal Department collaborated with the Human Resources Department, Labor Safety and Health Department and Audit Department to complete on-site inspections, provide guidance for all departments on improvements and follow up.
• Ensure that suppliers and contractors of all FENC production sites comply with FENC’s corporate social responsibility policies regarding labor and human rights, health and safety, environmental protection and business ethics.

• All departments formulate and implement improvement plans to address deficiencies identified in the self-evaluations.
• On-site inspections were conducted with supplementary information provided.
• Require suppliers and contractors to sign the FENC Supplier Code of Conduct and Corporate Social Responsibility Commitment Statement or add relevant clauses to transaction documents.

• Conducted monthly self-evaluations on regulatory compliance to monitor the compliance among all FENC departments and subsidiaries.
• Conducted on-site compliance audits at the Corporate Management in January 2023 and at all production sites in April, July and October.