Ethical Management Policy

Faraday's business policy is built on integrity, with a strong foundation in corporate governance and risk management. We conduct business in a fair and transparent manner, carefully evaluating the legitimacy of business partners, rejecting any improper gains to ensure the effective enforcement of the integrity policy.

As part of the Corporate Governance Group under the Sustainability Committee, the Integrity Management Task Force is responsible for overseeing integrity management, anti-corruption, and legal compliance. It is also tasked with developing the "Code of Integrity Management," and any establishment, revision, or repeal of this code requires Board approval. The task force reports to the Board of Directors annually; the most recent report submitted on October 29, 2024.

Regulatory Compliance

To support its global operations, Faraday has established a dedicated legal department that continuously monitors policy and regulatory developments across different countries and provides legal consultation through a systematic contract review process. We regularly conduct training programs on professional ethics, anti-corruption, and integrity management to strengthen employees' awareness of regulatory compliance through multiple channels. The audit unit incorporates regulatory compliance into its audit scope to ensure the effective enforcement of relevant policies. In 2024, Faraday reported no major legal violations (defined as fines exceeding USD 10,000).

Insider Trading Prevention

To safeguard shareholder rights and uphold fair treatment, Faraday strictly prohibits directors, executives, and other insiders from trading company stock based on non-public information. Stock trading restrictions include, but are not limited to, prohibiting directors from trading company shares during closed periods, which span 30 days before the annual financial report announcement and 15 days before each quarterly financial report announcement. We conduct annual insider trading prevention training, attended by 699, including Directors, managers and employees, participants in 2024. Furthermore, the board members and managers are reminded each year of the trading blackout period prior to financial report announcements to ensure compliance and prevent violations. The training video materials were uploaded to the internal system for ongoing employee reference.

Whistle-Blowing System

Faraday has established a system for reporting violations of the " Ethical Corporate Management Best Practice Principles" and the " Procedures for Ethical Management and Guidelines for Conduct". All processes strictly adhere to whistleblower protection principles, ensuring anonymity and safeguarding against retaliation.

Whistleblowing channels:

  • TEL：+886.3.578.7888 ext.88119
  • Email：whistleblower@faraday-tech.com
  • Mail：Auditing unit manager, Faraday Technology Corp. / No.5, Li-Hsin Rd. III, Hsinchu Science Park, Hsinchu City, Taiwan 30078, R.O.C

Performance of Ethical Management Policies

Code of Conduct & Workplace Ethics

  • Include “Code of Conduct & Workplace Ethics” into the employment contract and training material for new recruit
  • Signing rate for “Code of Conduct & Workplace Ethics” of new recruit in 2024: 100%

Training

  • Conduct training and propaganda on related ethical management when new recruit on-board and annually
  • Training course of ethical management in 2024: 742.5 hours in total for all employee

Legal compliance declaration

  • Declare and announce the concepts on ethical management in new recruit training, and on-job training
  • Added real-time updates on internal websites to disclose and remind ethical issues since 2020

Periodic evaluations

  • Business unit proceeds the regular self-check and self-evaluate legal compliance
  • Audit unit proceeds the regular audit.
  • Unethical conduct and anti-competition behavior in 2024: 0

Whistleblower procedure and protection

  • Establish a specific whistleblower procedure and handle by the dedicated unit
  • All flows should strictly follow the whistleblower protection principle.
  • In 2024, external whistleblowing: 1; direct reported by employee: 0