Ethical Corporate Management

Phison has always adhered to ethical corporate management principles, promoting ethical management at different aspects and levels from the Board of Directors down to all units. All employees, managers, and Board members should follow these principles and set an example for honest, ethical business practices.
The Company is committed to raising the ethical awareness of its employees, providing regular anti-corruption and ethical management educational training and whistleblowing channels for internal and external stakeholders to report dishonest, unethical behaviors to prevent instances of unethical management. In 2020, there has been no cases of corruption or unethical behavior. The Company opened 2 ethical management courses (Integrity management & anti-corruption, Integrity Management/Anti-Corruption/RBA Code of Conduct) to 4,047 personnel this year. The total training hours from these courses totaled 3,211 hours, with an average of 1.47 hours per person.



To ensure the Company adheres to the ethical management principles, a comprehensive auditing and internal control system should be established, with internal auditors reporting to the Board of Directors regularly and establishing relevant regulations:

Rules of Procedure for Meetings of Board of Directors

If a director or the corporate entity they represent is an interested party in relation to an agenda item, they should provide a full disclosure during the current meeting session. The director shall recuse himself/herself from all discussions and voting if they are in conflict against the company's interests, and shall not exercise voting rights on behalf of other directors. If the spouse or blood relatives within the second degree of kinship of a director, or a company that has a controlling affiliation with a director, have stakes in the meeting agenda, it is seen as the director's having a personal stake in the matter.
Where a director is prohibited from exercising voting rights at a Board meeting, the provisions in Article 180-2 of the Company Act shall apply in accordance with Article 206-4 of the same Act. .

Code of Conduct

This Code of Conduct was instituted to help employees abide by ethical regulations in day-to-day operations and educate stakeholders in the Company's ethical standards and regulations.

Ethical Code of Conduct

This Ethical Code of Conduct was instituted to help Company directors and managers abide by ethical regulations in day-to-day operations and educate stakeholders in the Company's ethical standards.

Procedures for Preventing Insider Trading

To prevent the Company or its personnel from purposely or accidentally violating insider trading regulations due to a lack of understanding of laws and regulations, resulting in lawsuits and damaged reputations, the Company established "Procedures for Preventing Insider Trading" to prevent insider trading, protect investors, and maintain the Company's interests.

Phison Electronics RBA Supplier Code of Conduct

In order to expand the social influence of Phison Electronics, we require suppliers to comply with labor, health and safety, environmental, and ethical regulations and management systems in our supplier code of conduct. Ethical regulations include ethical management, no illegitimate gains, as well as fair trade, advertising, and competition.

Whistleblower System & Handling of Unethical Conducts by Company Personnel

The following channels are adopted for reports, in the event that any Company Personnel may have involvement in contravention of laws or contravention of ethical principles:

1.
Window for whistleblower: Supervisors of Department of Administrative Management.
Report line: 886-37-586-896 #1100
Report E-mail: whistleblower@phison.com
2.
Anonymous suggestion boxes: Phison has established the Regulations Governing Internal and External Communication and Complaint and Report Management, which is applicable to Phi son's employees and external personnel having a business relationship with or stake in Phison. If the aforementioned personnel suffer or detect any unlawful infringement of rights, discriminations, improper punishments, violations of ethical management and conduct, violations of privacy and intellectual property rights, or other relevant matters, they may file complaints through the existing channels in which the complainants' names shall be provided, or through our new anonymous suggestion box. All complaints will be reported to the representative of the Corporate Sustainability Committee immediately, followed by the investigation in due course. All complaint cases must be approved by the representative before closing.

This Company shall investigate the relevant evidences and facts as it discovers or receives the report regarding the Company Personnel’s unethical conducts. If a person being informed of is confirmed to have violated the applicable laws and regulations, or the Company’s policy and regulations regarding the ethical management, the Company shall immediately request the violator to cease any relevant conducts, and shall make an appropriate disposition. When necessary, the Company will institute legal proceedings and seek damages to safeguard its reputation, its rights and interests.
With respect to the unethical conducts incurred, the Company shall ask relevant departments to review related internal controlling systems, operating procedures, and proposing improvements to prevent recurrence.