AcBel Polytech Inc. 康舒科技

Integrity & Risk Management

Internal Control and Audit System

Based on laws and regulations, AcBel sets up an independent internal auditing unit, namely the Audit Office in the headquarters in Taiwan, which directly reports to the Board of Directors, and also establishes audit division in every operating site in 2020, which helps the Board of Directors and managers check and review any deficiencies related to internal control as well as measure operational performance and effectiveness. It also makes recommendations as well as implementation whenever necessary to achieve the goals of the internal control system and assure the system’s effectiveness, which serves as the supporting reference for internal review and modification. Given this, preventing internal and external irregular conduct, avoiding illegal practice, and implementing ethical corporate management principles should be done to assure the company’s effective operation.

Regular internal audit is conducted and its results are presented to independent directors. Any major abnormality shall be effectively addressed through solutions proposed in meetings. Please refer to the corporate governance section of the official website for the communication items among the Board of Directors, internal audit executive, and accountants. Corruption-related risk assessment is conducted at each operating site yearly, and the corruption risk is managed and controlled through the implementation of internal audit and control.

Three high-risk items in 2019, the same as the ones in 2018, have been identified and they include supplier management & operation; sales & crediting; procurement of suppliers, assets, plants and machinery. By implementing internal auditing reviews, we verified no occurrence of events in violation of ethics neither causing damage to the operation and reputation of AcBel in relation to aforementioned items. Please refer to https://www.acbel.com.tw/en/governance 

Ethical Management and Legal Compliance

As “Integrity” is the most important core value of the company, AcBel demands all board members, managers, employees, and persons having substantial control over the company ("substantial controllers") to sign the ethical commitment letter in person, making sure the business activities are conducted with integrity and ethical management policies are implemented.

Board of Directors shall exercise the due care of good administrators to urge the company to review the effectiveness of ethical management. Corporate Sustainable Development Office is exclusively set up as the coordination window for promotion of social responsibility and ethical management, with the Human Resource Department being in charge of implementing ethical management policy and formulating preventative measures and the Audit Office being in charge of supervision. The execution results of ethical management policy are submitted at least once a year to the highest management level and board of directors as guidelines for modifying pertinent strategies and plans in the future.

“AcBel Employee Code of Conduct” and employees’ reward and punishment regulations emphasize that employees should comply with laws and regulations at work through educational trainings and promotion measures as well as help to lower the risks due to unethical conduct by reporting to the whistle-blowing system and internal audit system. If any employee is suspected of misconduct, dedicated unit will conduct investigation and arrangement based on “Reporting on Unlawful Activities Procedures” under the principle of protection and confidentiality. Meanwhile, the company will facilitate continuous improvement and refine precautionary measures to prevent similar misconduct from occurring again.

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Risk Assessment and Management

Headed by the President, the Risk Management Committee formulates Business Continuity Planning (BCP) and holds at least one meeting yearly. The Risk Management Committee is joined by representatives from the Operating & Management Office, Audit Office, Financial Center, Management Information Service Center, and Legal Affairs Office. Systematic analysis is further utilized to identify the potential risks and incidents that might affect the corporate operation performance economically, environmentally, and socially. Based on the occurrence rate and severity of the risks or incidents, related precautionary measures, coping strategies, management, and plans for continuing operation are abided by to reduce or minimize losses of lives and potential damages to the property, environment, and business reputation.

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Information Security Policy

To implement information security governance and make sure the key information of stakeholders are protected, including company, customer and suppliers, we construct rigorous information security risk management structure, formulating information security policies and concrete management projects, conduct information security promotion and meetings involving experts to make related information security reinforcement plan regularly, in order to elevate the technology capacity of staff in charge of information security, optimize information software and hardware equipment, and build highly secure environment comprehensively. In 2019, no cyber- attack or incident occurred and the company never involved in any information security lawsuit or regulatory investigation.

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Contingency Measures to COVID-19

AcBel’s operation management structure has initiated COVID-19 prevention mechanism, with the chief executives of each plan headed the pandemic prevention team since February. With daily joint meeting to control employees’ health condition and management, the supply of pandemic prevention resources, the supply and demand adjustment of the supply chain, products manufacturing, and the delivery, in order to help the company resume its operation at the lowest level within the shortest period of time.

Dongguan Plant resumed work in February; Wuhan Plant received local government permission to officially start operation in March; Philippine Plant followed local government’s rules to conduct pandemic prevention; Tamsui Plant has functioned well under the principle of putting pandemic prevention first. The overall capacity has been affected by COVID-19, but with contingency management and communication measures with supply chain in place, AcBel has managed to effectively contain the pandemic impact over company’s operation.