Corporate Governance

By enhancing transparency, accountability, and efficiency, strengthen the balance between management and shareholders, establish effective risk management and internal control mechanisms, to enhance long-term corporate value and promote sustainable operations.

Integrity Management

Integrity is the core of Phihong’s corporate philosophy and the central mindset guiding all activities. The company adopts a zero-tolerance policy towards corruption and bribery. It has established internal regulations such as the “Code of Integrity Management” and the “Code of Corporate Ethics and Business Conduct,” which have been approved by the board of directors. These regulations clearly outline the company’s integrity management policies and require all operational activities within the company and its subsidiaries to adhere to them, ensuring that the decisions and actions of employees align with the company’s values and the principles of integrity and fairness.

To strengthen the management of integrity operations, Phihong’s Legal Department leads the implementation, with various internal units responsible for the following tasks and reporting to the board of directors annually:

Legal Department: Develop preventive measures to ensure integrity management in line with local laws and regulations where the company operates, and establish standard operating procedures and conduct guidelines for relevant business activities.
Human Resources Department: Promote and coordinate training on the integrity policy.
Audit Department: (a) Plan a whistleblower system to ensure its effectiveness. (b) Assist the board of directors and management in verifying and evaluating the effectiveness of preventive measures implemented for integrity management, and regularly assess compliance with related business processes, preparing reports accordingly.

PHIHONG Taiwan

Phihong Taiwan Anti-Corruption Training Themes	Hours	Participants	No. passed
Micro-E Charging - Advocacy on Human Rights Issues	0.5	209	209
Micro-E Charging - Corporate Ethics and Business Code of Conduct	0.33	345	345
New Employee General Training: Introduction to Corporate Sustainability	1	53	53
New Employee General Training: Phihong Code of Corporate Ethics and Business Conduct	0.5	56	56

Participate in training in 2023 Total number of people : 663

The total number of training hours : 2.33 hours

pass rate 100%

PHIHONG dongguan

Phihong Dongguan	Staff Category	Participants	Course hours	Passing ratio
Responsible Business Alliance Code of Conduct (RBA) and Corporate Social Responsibility Promotion	New hires	4,384	4,384	100%
	Existing	1,918	2,458	100%

Participate in training in 2023
Total number of people : 6302

The total number of training hours : 6842 hours ; Average training time 1.08 hours / person

pass rate 100%

PHIHONG haiphong

Phihong Haiphong	Staff Category	Participants	Course hours	Passing ratio
Introduction of Social Responsibility System. Corporate Philosophy and Culture	New hires	1,087	8,696	100%
	Existing	180	271	100%

Participate in training in 2023
Total number of people : 1267

The total number of training hours : 8967 hours; Average training time 7.07 hours / person

pass rate 100%

Reporting system

Whistleblower Hotline and Protection Mechanism

Phihong’s reporting channel is managed by the Audit Department, which reports directly to the Board of Directors. The department’s manager serves as the dedicated contact for receiving and handling complaints, and is responsible for reporting the investigation results to the relevant supervisors. The company ensures the confidentiality of the complainant’s identity and the content of the complaint, and will actively verify and address the issues raised. If any employee is found to have violated ethical standards or breached relevant codes of conduct, complaints can be submitted through the designated hotline and complaint mailbox.

Reporting channels for illegal and unethical or dishonest conduct Internal staff can also report to the Audit Office through the internal hotline by calling ext. 1340. or by e-mail at [email protected].