Policy Aspect

Chunghwa Telecom has formulated a Code of Conduct for Chunghwa Telecom Suppliers to strengthen suppliers' anti-corruption practices. All suppliers must sign and abide by it when winning a bid. The Code of Conduct specifies:

• When performing business, suppliers shall not directly or indirectly provide, promise, request, or accept any form of improper benefits, including kickbacks, commissions, facilitation payments, or other means to customers, agents, contractors, suppliers, public officials, personnel, or other interested parties. (note)
• Suppliers who make direct or indirect donations to political parties, organizations, or individuals involved in political activities must comply with political donation laws and relevant internal operating procedures of the Company and not seek commercial interests or trading advantages. Suppliers should comply with applicable laws and internal operational policies for charitable donations or sponsorships and must not engage in disguised bribery.

Management Actions

1. Supplier education and training: In addition to regularly holding ESG education and training for physical suppliers, Chunghwa Telecom Supplier Net Zero Sustainability Academy (https://www.chtti.cht.com.tw/greensupply/index.jsp) will be established in 2024 to conduct comprehensive anti-corruption training for all suppliers through online learning, and publicly disclose and convey Chunghwa Telecom's anti-corruption policy and strengthen the awareness and compliance awareness of supplier integrity management policies.
2. Introduced ISO37001 anti-bribery management system: Chunghwa Telecom adheres to the principle of zero tolerance for corruption, formulates the Anti-Corruption, Anti-Bribery, and Anti-Money Laundering Policies, establishes clear anti-corruption and anti-bribery guidelines, and regulates all business interactions, including directors, all employees, suppliers, and relevant stakeholders. In 2024, the ISO 37001 anti-bribery management system was introduced to ensure daily operations comply with applicable legal requirements. Through prevention and monitoring mechanisms, we can reduce the legal risks and fines caused by corruption.
3. Procurement terms: All bidders must provide a statement of anti-corruption commitment and promise to comply with the obligation in all processes of participating in the procurement case. This necessary qualification condition applies equally to all suppliers, ensuring a level playing field. If a supplier violates the anti-corruption commitment, we may cancel the manufacturer's bidding, bid qualification, confiscate the deposit, performance bond, warranty bond, terminate or rescind the contract, impose a suspension, or request punitive liquidated damages of 20% of the purchase amount of the purchase case.