Corporate Governance

Ethical corporate management philosophy and code of conduct

FPG abides by the law and code of conduct, upholds the corporate culture and spirit of "diligence, perseverance, frugality and trustworthiness," the management philosophy of integrity, fairness, transparency, self-discipline, and accountability, and established and implemented the ethical corporate management policy and code of ethics to achieve corporate sustainability. Related management regulations are summarized below:

• 01

  Public companies in FPG have all established their Ethical Corporate Management Best Practice Principles and Code of Ethical Conduct. Management of the companies have made a commitment to actively implement and supervise the implementation of the ethical corporate management policy, and report ethical corporate management evaluation results to the Board of Directors each year.

• 02

  The Personnel Management Rules and Work Rules set forth a strict code of conduct and code of ethics, and also specify rewards and penalties. All directors, managers, employees, or controlling entities are strictly prohibited from directly or indirectly providing, promising, demanding, or accepting any improper benefits, or engage in other unethical or unlawful conduct or conduct that breaches fiduciary duty, in order to prevent fraudulent practices, embezzlement, acceptance of bribes, leakage of trade secrets, or false claims.

• 03

  For operating activities with relatively high risk of unethical conduct, employees in sales, procurement, outsourcing, construction supervision, and budget related positions, as well as positions that may benefit other vendors, are explicitly prohibited from accepting invitations from vendors to banquets or other social activities, and are also prohibited from accepting gifts or other benefits from vendors. Violators will be terminated and their supervisor will be jointly punished. Furthermore, employees periodically rotate between positions to prevent corrupt practices.

• 04

  We established the Directions for Preventing Insider Trading, and strictly prohibit insiders, such as directors and employees, from using company assets, non-public information, or their position to gain illegal benefits.

• 05

  Besides requiring directors to avoid any conflict of interest, we also explicitly require employees to strictly abide by the Code of Conduct to avoid any conflict of interest, and actively report any ethical concerns, such as conflict of interest. We also added a non-compete clause to prevent conflict of interest.

• 06

  We established an open and fair mechanism for awarding procurement contracts, and use the electronic trading platform Formosa Technology E-Market Place for open tendering procedures.

• 07

  Contracts signed for business activities all contain an ethical conduct clause. We perform due diligence to determine the integrity of stakeholders, such as customers and suppliers, in order to prevent unethical conduct from damaging the Company's interests.

• 08

  We are actively promoting ethical corporate management, including promoting the ethical corporate management policy and organizing education and training sessions on topics relating to ethical corporate management.