Internal Control
Internal Control System

According to Regulations Governing Establishment of Internal Control Systems by Public Companies, NTC establishes an effective Internal Control System in order to make sure the operation management and its subsidiaries comply with the law and regulations. The system is also reviewed from time to time in order to adapt any environmental changes and ensure the whole system’s effectiveness.

The implementation of the internal control systems is a continuous operation, via ongoing check of the operation and management tasks to find the facts that deviate from the company policies, operating procedures, the stated objectives or expected standard, and responding to the management at appropriate levels by the feedback systems, and taking the necessary corrective action to ensure that the company follows the original management direction. In addition, NTC prevents errors and fraud with internal check and balances.

 
Internal Auditing

NTC establishes the internal auditing unit under the Board of Directors, and appointed qualified persons as full-time internal auditors. The internal auditors shall pursue continuing education as well as attend internal audit training held by professional institutions annually to improve their competence.

The internal audit scope includes:

  • Review the reliability and integrity of financial and operational information.
  • Review the existing systems to ensure compliance with policies, plans, procedures, contracts and laws.
  • Review the means to protect the assets.
  • Assess the efficiency and effectiveness of resources use.
  • Review the operation or project programs to determine whether the result is consistent with the stated objectives.
 

Internal auditing is not the only duty for the Independent Audit Department. Each department should also conduct self-assessments for particular auditing items in a prescribed cycle. The Independent Audit Department reviews them regularly or irregularly depending on the results of Internal Control Systems to ensure operating effectiveness.

 
Anti-Corruption

Formosa Plastic Group requests that all employees must not accept any money, gift, or commission from suppliers, especially the employees who work in procurement division should follow the principle strictly. Formosa Plastic Group carries out the regular rotation of the staff who serves as operating, procurement, logistics, construction supervision and budget planning functions to prevent the abuses. Being the member of Formosa Plastics Group, NTC hopes that every employee follows the Code of Ethics whether at work or in their life in order to achieve Formosa Plastics Group’s enterprise culture, “Diligence, Perseverance, Frugality and Trustworthiness’’. There was no case of corruption in 2015.

 
Code of Conduct

In order to follow the international standard and connect with global community, all employees are demanded to full compliance with the standard of Electronic Industry Code of Conduct, following strictly the law and business integrity, to ensure the behavior of NTC and its employees under this standard. Employees are strictly forbidden to do any behaviors that could damage the company, such as bribery, insider stock trading, etc. To achieve this goal, all new employees are trained with Personnel, Disciplines and Penalty Rule according to NTC Employee Handbook. In case of the disciplinary to be judged and verified as a serious fact, the employee will be dismissed immediately according to NTC discipline policy. If so and causes the Company lose, NTC would purse for indemnification by law. The goals of EICC in 2015 included working hours, ethics training, and zero corruptions which were achieved successfully. For the goal of zero sexual harassment, it’s a pity there was 1 case being investigated, disposed, and closed completely. Despite this case, NTC will continue to create equal working environment to both male and female employees. NTC strictly forbids the sexual harassment which is not only to NTC colleague inside company, but also to NTC suppliers. In 2015, the Code of Conduct complied with law. The EICC training and communication activities are completed expectedly. In a summary, the potential risk of EICC violation is really low at NTC.

 
Grievance Channels

NTC establishes its own policy for employees to file complaints and report any illegal behaviors. For example, when an employee notices any illegal behaviors which could damage individuals or company or if an employee attempts to take advantage of his/her position, he/she can report to his/her supervisor after filling the workplace complaint form. In addition, NTC assigns designated person and create hotline and email information on NTC website for interest parties to file a complaint if anyone’s interests are violated.

 
Cases Reported
Access to grievance system 2015 2016
Complaint letter 0 3
Workplace complaint form 1 1
Grievance hotline & mail box 0 0
Total 1 4
Cases lodged 1 1
Cases closed 1 1

Note: lodged cases not related to corruption