Ethics and Integrity

Fubon Financial Holdings has fostered a corporate culture of integrity and created a sustainable operating environment based on the management principles of honesty, transparency and responsibility. It first established a “Code of Ethical Conduct” in 2006, followed by “Ethical Corporate Management Best Practice Principles” and “Corporate Social Responsibility Best Practice Principles” in 2011. These guidelines have reinforced ethical corporate management, fostered sound commercial operating models and risk management mechanisms, and promoted social welfare.

These guidelines stipulate that board directors, executives, employees or people must abide by principles of good faith. They are prohibited from acting unethically, including from indirectly offering, promising, requesting or accepting any improper benefits or engaging in any other ethics violations, illegal behavior or breach of fiduciary duty to receive or maintain benefits.

Fubon Financial Holdings and its subsidiaries have also issued “Work Rules” that clearly require employees to behave honestly, including complying with strict bans on insider trading and corruption for personal gain. Preventive measures have also been taken to address business activities where the risk of unethical behavior is relatively high.

Fubon Financial Holdings has established strict and effective accounting and internal control systems to realize its goal of ethical management. Auditing divisions have incorporated compliance with ethical management principles into their regular audits, and they report to the board regularly on any shortcomings and improvements being made.

The Company and its subsidiaries publicize and explain to new employees the standards of discipline expected of them, and hold legal compliance courses every year. Systems are also in place to strengthen managers’ attention to internal controls and internal audits, and education and training programs reinforce the management philosophy of employee integrity and strict discipline.