Corporate Governance
Ethical Management
Risk Management
Information Security and Privacy Management
Human Rights Management
Supply Chain Management
Customer Service and Satisfaction
Innovative Development

Compliance, Ethics and Anti-Corruption

 

LITEON is steadfast in its commitment to upholding honesty and integrity in its business management, ensuring compliance with all applicable laws and ethical standards in the countries where it operates. This commitment is reflected in a sophisticated compliance management system that is continuously evaluated and updated. The Legal Department plays a pivotal role in monitoring changes in both domestic and international regulations that could impact the company’s operations, conducting regulation identification to ensure adherence across all business activities.


LITEON emphasizes anti-corruption education through regular training for all employees. To help LITEON establish a safe and compliant environment, the Internal Audit Division utilized AI software and advanced AI multimedia technology to develop a training course tailored for employees and directors. Utilizing effective, professional, and interactive teaching methods, the course enables students to gain an in-depth understanding of legal and regulatory content and apply it effectively in practice.


The internal control framework comprises routine audits and tailored task forces for large investment projects designed to mitigate fraud and illegal activities. LITEON maintains a zero-tolerance policy for compliance breaches, enforcing appropriate disciplinary measures proportional to the severity of any misconduct.

All employees are mandated to adhere to a stringent Employee Code of Conduct, encompassing areas such as professional ethics, gifts, client privacy, and intellectual property rights. Compliance training is mandatory for newly-recruited staff, who must sign a statement committing to ethical conduct. Compliance is implemented throughout every operational level of the business activities, such as product design, procurement procedures, and discipline is strictly enforced. We explicitly state prohibition of offering or taking of bribes; offering of illegal political donations, inappropriate sponsorship or charity donations, and improper gifts, treatments, or other unjustified benefits; infringement of intellectual property rights; and unfair competition as well as prevention measures and procedures that prevent products or services from causing damages to stakeholders in the Ethical Corporate Management Best Practice Principles. The rules are intended to protect the rights of customers and prevent loss of assets, penalties, and damage to reputation. Furthermore, LITEON connects compliance with employee remuneration, including "honesty and integrity" as a critical performance indicator impacting salaries; punitive measures for non-compliance range from warnings to termination.


The Responsible Business Alliance (RBA) offers various in-person courses designed to enhance employee awareness of ethical standards and compliance issues. These courses cover topics such as business integrity, confidentiality, environmental protection, and anti-corruption.


As part of its internal controls and audits, LITEON conducts reviews within individual units and subsidiaries, disclosing updates and results in the annual report to ensure transparency and adherence to compliance practices. Overall, LITEON’s robust compliance policies aim to safeguard customer rights, reduce financial penalties, preserve assets, and protect the company's reputation, illustrating its dedication to ethical business practices and sustainable growth.

 

Reporting Mechanisms

LITEON upholds honesty and integrity in business management and complies with the laws and ethical standards of the countries in which it conducts business. To strengthen compliance and corporate governance practices, the board of directors passed the Corruption Reporting Guidelines. The guidelines require that the Office of the Chairman handle reports in accordance with the guidelines and related procedures. Details of the reporting mechanisms and processes are as follows:

 

Ethics complaint filing and reporting channels

The LITEON reporting channels are monitored by a dedicated staff responsible for accepting and processing reports. The staff also makes regular status reports to the Audit Committee. LITEON keeps informants' identities and their reports confidential and takes action to investigate and handle the cases.

Discovery of any unethical behavior or violation of the code of conduct may be reported by using one of the hotline and mailboxes below.

  • Telephone: +886-2-8793-6833

  • Mailbox: Office of Chairman Reporting Mailbox at PO Box 156-21, Jiangnan Post Office, Neihu District, Taipei City 114956.

Other channels available to employees in the company are the existing internal reporting extension at 1234 and the email address1234@LITEON.COM.

Process

Reports that are accepted by the task force will be assigned to the appropriate units for review according to the report and complaint processing procedures. If a complaint is confirmed to be valid, a committee consisting of department representatives andexperts will be created to review and rule on the complaint. Employees who areconfirmed to have violated the ethical corporate management best practice principles will be subject to administrative disciplinary action, recourse against unlawful gains, or further legal actions as appropriate. 

Internal controls

Regular internal audits and training are performed to strengthen internal control. Furthermore, task forces will be created for large investment projects to apply certain processes to manage and prevent the risk of fraud and prevent illegal activities.

  • A campaign to raise awareness of the LITEON Ethical Management Policy takes place every year. The objective is to ensure the directors, managers, and employees understand fully and adhere to the ethical management regulations. Related training courses are also organized to reinforce compliance awareness.

  • To raise awareness of integrity and self discipline, LITE-ON requires new employees sign a statement of commitment to ethical conduct when they join the company so to help its employees understand the importance of ethical conduct and the need for it.

 

2024 Report Handling Status

  • Discrimination:
    ○ 1 case was reported involving discrimination based on race, religion, skin color, or nationality.
    ○ The case was handled confidentially and promptly through the company’s grievance mechanism.
  • Sexual Harassment:
    ○ A total of 3 cases were reported across Taiwan and overseas sites.
    ○ 1 case was unsubstantiated, while 2 cases were closed with disciplinary actions taken, including termination, depending on the severity.
  • Customer Privacy
    No incidents of customer privacy violations or loss of customer data were reported in 2024.
  • Conflicts of Interest, Money Laundering, or Insider Trading
    No substantial cases were reported in 2024.
  • Legal or Regulatory Penalties
    There were no legal penalties against the company or its personnel, nor any disciplinary actions for violations of internal control systems that could materially affect shareholder equity or securities prices.