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Corporate Governance and Integrity Management

Establishing a business with integrity and fulfilling governance responsibilities to build a transparent and efficient sustainable management system.

(1) Corporate Integrity Management

Cathay Chemical Factory strictly prohibits any acts of corruption, bribery, and extortion. It periodically promotes the work rules at management meetings, which stipulate that employees should act with caution and integrity, and must not take advantage of their positions for personal gain or accept gifts from others. For cases of corruption, if found to be true, legal responsibility will be pursued to eliminate the occurrence of corruption. The company has established effective accounting systems and internal control systems to ensure the implementation of integrity in operations, and the auditing unit will verify compliance with these systems according to the annual audit plan.

(2) Organization Structure of the Sustainability and Integrity Management Committee

Frame 25

Committee Responsibilities
Core Responsibilities	Formulate corporate sustainability policies. Planning, execution, and review of work related to sustainability, integrity management, and social responsibility, and regular reporting to the board of directors. Review the goals, strategies, and action plans of the corporate sustainability policy, and track the progress of each plan. Discuss the issues of concern to various stakeholders (shareholders, customers, suppliers, employees, government, non-profit organizations, community, media) and the supervision communication plan. Review the effectiveness of the preparation of the sustainability report.

Committee Responsibilities

Core Responsibilities

Formulate corporate sustainability policies.
Planning, execution, and review of work related to sustainability, integrity management, and social responsibility, and regular reporting to the board of directors.
Review the goals, strategies, and action plans of the corporate sustainability policy, and track the progress of each plan.
Discuss the issues of concern to various stakeholders (shareholders, customers, suppliers, employees, government, non-profit organizations, community, media) and the supervision communication plan.
Review the effectiveness of the preparation of the sustainability report.

Unit	Responsible Department	Description of Authority and Responsibility
Sustainability Information Management Team	Composed of personnel appointed by the general manager	1. Administrative assistance for committee meetings, including meeting notifications, sign-in sheets, and meeting minutes. 2. Supervise and integrate the operations of various workgroups, consolidate the collection, recording, processing, preparation, approval, and disclosure of sustainable information, and confirm whether it is handled in accordance with the company's "Sustainable Information Management Procedures." 3. Strengthen the implementation, information disclosure, and promotion of the sustainability report to stakeholders. 4. Promote and advocate for the spirit of sustainability, integrity in business operations, and social responsibility to be integrated into the company's management strategies and culture.
Environmental Sustainability Promotion Team	Led by the Deputy Factory Director of the Pingnan Plant	1. Integrate internal environmental protection measures within the company and regularly track the results of their implementation. 2. Promote green production, and adopt economically feasible methods in the design and construction process, or in the selection of materials and equipment, to reduce pollution, minimize environmental damage, and lower the risks to human health.
Social Participation Promotion Group	Led by the factory manager of Pingnan Plant	1. In terms of employees, in addition to providing a safe and harmonious working environment and protecting employee rights, the company also offers professional skills training and future career development planning, in order to maintain good labor relations and enable employees to contribute to the company's sustainable operation. 2. Discuss relevant corporate sustainability issues arising from the cooperation of the company's customers, contractors, and suppliers in operational content, such as customer relations, labor safety, and human rights protection, hoping to use the company's influence to promote the industry's focus on supply chain issues. 3. Actively collaborate with relevant educational or social organizations, and combine our professional knowledge to propose practices that are beneficial to society, fulfilling the company's responsibility as a corporate citizen.
Corporate Governance Implementation Team	Led by the manager of the management department	1. The company's sustainable development and strengthening of the corporate management system. 2. Business strategy, performance, risk management, and corporate governance. 3. Maintain the trust relationship between the company and stakeholders. 4. Meet the expectations of shareholders and the government for the company's integrity in operations, continuous profitability, and stable growth.
Integrity Management Promotion Team	Led by the Deputy General Manager of the Pingnan Plant	1. Assist in integrating integrity and ethical values into the company's business strategy, and cooperate with legal regulations to establish relevant anti-corruption measures to ensure integrity in operations. 2. Assess the risks of dishonest behavior within the scope of business operations and formulate plans to prevent dishonest behavior accordingly. 3. Plan the internal organization, staffing, and responsibilities, and establish a mutual supervision and checks and balances mechanism for business activities with higher risks of dishonesty within the scope of operations. 4. Promotion and coordination of integrity policy training. 5. Plan a reporting system to ensure its effective implementation. 6. Assist the board of directors and management in auditing and evaluating whether the preventive measures established for implementing integrity management are functioning effectively.

(3) Recent annual operations of the Sustainability and Integrity Management Committee:

Meeting Date	Meeting Content
Round 1 (114.03.03)	Through the editing progress and planning of the company's 2024 Sustainability Report.
Round 2 (114.06.30)	The progress and implementation of the company's 2024 sustainability report editing.


*(4) Company Whistleblowing System*
● The company's "Employee Work Rules" stipulate reward and punishment regulations. For violations of regulations and infringement of company interests, different disciplinary actions will be taken according to the severity of the circumstances. ● The communication channels for internal employee opinions are smooth; regarding complaints and reports of violations of integrity management regulations, the receiving unit has an obligation to keep the informant's information confidential and shall not disclose it. The company has taken confidentiality and protection measures to protect whistleblowers from improper treatment due to their reports.