Conduct regular self-evaluation on compliance to reduce risk of violation.
In 2014, the President of Administrative Headquarters served as the chief supervisor and established Company-wide Regulatory Compliance System.
Objective
Enhance employees’ legal awareness to avoid illegality.
Protect corporate interests and image.
Reduce operational risks for the Board and management team.
Improve corporate efficiency.
Target
Confirm key regulations concerning corporate operation. Regulations governing penalty for Board members and managers; damages to corporate image; major civil offense; administrative liability are given priority status for implementation. Areas prone to deficiency are listed as the focus for annual audit. Given the above criteria, 89 regulations and 598 control points are identified.
The Implementation of 2024
All units are required to conduct self-assessments monthly to ensure compliance with field regulations, thus reducing legal risks. The Legal Department will perform on-site inspections, and the results will be submitted to the Board of Directors. Key tasks in 2024 include:
Launching self-regulation on compliance to enhance reporting efficiency, expand legal information, and improve cybersecurity
Collaborating with Labor Safety and Health Department on on-site inspections of public hazardous material
Promoting the Act of Gender Equality in Employment, the Gender Equity Education Act, and the Sexual Harassment Prevention Act to raise awareness of sexual harassment prevention and foster a gender-equal workplace environment
Coordinating with the Finance Department to effectively manage the initial reporting of bulk stock acquisition declarations
Ensuring that shareholding transfers by insiders are reported in compliance with regulations and collaborating with the Accounting Department for regular awareness campaigns and audit discussions
Promoting and inspecting the management measures of “Regulations Governing Determination of Reasonable Due Care Obligations of Enterprises Commissioning Waste Clearance” and implementation of “Methods and Facilities Standards for the Storage, Clearance and Disposal of Industrial Waste”
Assisting U.S. subsidiaries in complying with state government regulations on excess emissions improvements
Monitoring the establishment or amendment of the Climate Change Act
Distributing the latest regulations to every factory and subsidiary on a monthly basis
Participating in monthly Risk Control Meetings and weekly member meetings at the Vietnam subsidiary, along with providing weekly reports on law regulations
Sharing insights on corporate governance and legal compliance at the "Corporate Integrity, Sustaining Forward" seminar organized by the New Taipei Smart City Enterprise Service Integrity Platform
Coverage Areas of Regulatory Audit
Target
Compliance Detail
Shareholder
Financial report, internal control, issuance of credit and endorsement/guarantee, acquisition and disposal of assets, convening of meeting
Customer and Competitor
Fair trade, import/export
Corporate Asset
Business accounting, tax management, patent and trademark, Copyright Act, trade secret, personal data protection
Employee
Labor condition, welfare and insurance, labor relations, labor retirement, health and safety
Society
Corporate corruption, political donation
Environment
Environmental protection
Detail
Category
Focus
Task
2024 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.
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.
Developed robotic process automation (RPA), which extracts regulatory updates daily from the Executive Yuan Gazette Online and the Financial Supervisory Commission (FSC) as well as weekly from sources related to the economy, health and safety, labor affairs and fire safety, and sends updates to applicable personnel immediately.
Amended the Audit Committee Charter and Meeting Rules of Board of Directors for FENC to align with the legislative amendments.
Amended the Rules Governing Financial and Business Matters Between Far Eastern New Century Corporation and its Related Parties.
Adjusted the Company declaration based on the new regulations pertaining to shareholding declaration.
Established the Guidelines for the Use and Management of Generative AI with clear stipulations on the use of the technology among employees.
Released the key requirements for FENC and the subsidiaries on its consolidated statement for declaring carbon neutrality in accordance with the Guidelines for Corporate Declaration of Carbon Neutrality issued by the Ministry of Environment.
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
Repeated the promotion of key amendments to the Gender Equity Education Act, Gender Equality in Employment Act and Sexual Harassment Prevention Act in January to raise staff awareness of the prevention and control of sexual harassment at all production sites.
Regulatory promotion: Promoted the Regulations Governing Determination of Reasonable Due Care Obligations of Enterprises Commissioning Waste Clearance in July; the Storage, Clearance and Disposal of Hazardous Industrial Waste in October.
Conducted preliminary training on confidential information management for intellectual property on August 1.
Shared the key amendments to Regulations for the Occupational Safety and Health Equipment and Measures at all production sites in October.
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.
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-evaluation to monitor regulatory compliance among all FENC departments and subsidiaries.
Revamped and launched the self-evaluation system for regulatory compliance in April to improve efficiency, expand the regulatory database and boost information security.
Conducted on-site compliance audits at the Corporate Management in January and at all production sites in January, July and October.
Conducted on-site inspections at production sites in January to examine public hazardous substances.
There were no litigations related to the violation of anti-trust or fair trade regulations in 2024.
Waste disposal and cleanup: Audited management approaches as required by the Regulations Governing Determination of Reasonable Due Care Obligations of Enterprises Commissioning Waste Clearance in July and by the implementation measures according to the Storage, Clearance and Disposal of Hazardous Industrial Waste in October.
Assisted the U.S. subsidiary to fulfill its agreement with the state government and brought its emissions up to code.
