Internal Control and Internal Audit
CTCI’s internal control system is based on Financial Supervisory Committee’s regulation, namely Regulations Governing Establishment of Internal Control Systems by Public Companies. Our internal control system is designed by managers, passed by the Board of Directors, and managed by the Board of Directors, managers and other employees. Its purpose is to promote the sound operation of the Company and to ensure the achievement of operational effectiveness and efficiency, as well as the reliability, timeliness, transparency of information reporting and compliance with relevant laws and regulations.
CTCI has an internal audit unit, the Audit Department, which is under the Board of Directors and is staffed by a dedicated audit supervisor and internal auditors. It assists the Board and managers in checking and reviewing the lack of internal control systems and measuring the effectiveness and efficiency of operations, and provides suggestions for improvement in a timely manner to ensure the continuous and effective implementation of the internal control system and as a basis for reviewing the internal control system.
The Audit Department implements audit operations in accordance with the annual audit plan approved by the Board of Directors, discloses the missing and abnormal items found in the internal control system in the audit report, traces them after the report is submitted, and compiles tracking reports at least quarterly until the issue is solved to ensure that the relevant units have taken appropriate improvement measures in a timely manner. In addition to the monthly report on the implementation results of the audit plan to the Independent Directors, the audit supervisor also attends the Audit Committee and the Board meetings to submit an audit report to implement the audit results.
CTCI Group Codes of Ethical Conduct
According to the principles on human rights, labor standards, environment protection and anti-corruption, as listed in the UN Global Compact, Universal Declaration of Human Rights and the UN Framework and Guiding Principles on Business and Human Rights, which prohibit any form of discrimination, forced labor, and use of child labor, CTCI respects and protects internationally recognized human rights, and never engages in any behavior that disregards and abuses human rights. In terms of labor standards, we safeguard the freedom of speech by establishing an ""Employee Opinion Platform"" and publish the outcomes of the labor-management meeting to completely eliminate all unfair labor practices and eliminate any discrimination in employment. We increase human rights awareness so that stakeholders can be respected and treated fairly. Therefore, CTCI has formulated the ""CTCI Group Codes of Ethical Conduct"" for its directors, managers and all employees when they perform their duties.
""Most Reliable"" is the brand spirit of CTCI, while ""Professionalism, Integrity, Teamwork, Innovation"" is our corporate culture. In order to let all colleagues further understand their connotations, we established the ""Corporate Culture Behavioral Indicators (Supervisor Edition &Employees Edition) "" as the guidelines for the daily behaviors of all the colleagues in the Group, and follow-up activities to explore and understand the corporate culture. Based on the philosophy of this corporate culture, we are committed to our vision and become the ""Most Reliable Global Engineering Services Provider.""
CTCI has organized courses on Codes of Ethical Conduct enforcement during training for new recruits while reinforcing our employees’ understandings on our belief in honest business operations. We have conducted educational training for employees in integrity beliefs: anti-corruption, integrity, commitment, and honesty, so that business integrity is deeply rooted in every CTCI employee. In 2019, the number of newly recruited personnel in Taiwan is 205, and the coverage rate is 100%. CTCI will continue to promote education and training to overseas business outposts and to all employees in the Group, so that we can build an honest business operation as part of Group’s corporate culture and establish our “Most Reliable” brand value.
▼ CTCI Codes of Ethical Conduct Training (Taiwan)
Concrete Implementation of Integrity Management
CTCI Group takes ""Most Reliable"" as its brand positioning. In order to educate employees on integrity, we released the ""Enforcement Rules of Code of Ethical Conduct"" in 2016 as guidance. We also commissioned Deloitte & Touche, a third-party organization, to build a ""reporting website"" on our ""Employee Opinion Platform,"" to protect the rights of informers and ensure that the cases are being investigated properly. If an employee sees any improprieties within the group that will cause or are causing harm to the group or the staff, he/she can file a report. According to regulations, anonymous reports shall be handled accordingly; in addition, the platform allows partners to report illegal activities. Human resources is the department in charge, and they will reply with the final results in time. Throughout the process, employees and manufacturers shall be fully protected.
To ensure fair trade and prevent bribery and corruption, CTCI requires that employees shall not give discounts when conducting trading activities with stakeholders, and cannot ask for, make deals with, give, or accept gifts, entertainment, kickbacks, or bribes for himself/herself or on behalf of others when carrying out his/her job duties. In the ""Enforcement Rules of Code of Ethical Conduct "", we clearly lay out and define the principles of ""receiving gifts"", ""prevention of conflicts of interest"" and ""protection of trade secrets and intellectual property rights,” as well as their penalties for violations. Meanwhile, the same standard and promotion of this policy are both applied to CTCI's overseas project execution sites. Our partners are also given the necessary education and communication. At the same time, our owners will also communicate and audit from time to time. This truly demonstrates CTCI's determination to promote this policy.
In April 2017, the prosecution unit came to one of our construction sites to conduct a search, and in July 2018, news reported that one of our employees inflated scaffolding cost. This happened after we had our own internal investigation, and found out that an employee was suspicious of abusing his position to accept bribes. Therefore, we filed a report to the authorities for further investigation. To cooperate with the investigation, we suspended the employees immediately, and after the prosecutor had obtained concrete evidence and found the employee guilty, we laid off said employee in an announcement. Based on this, we will cooperate with the authorities with an open and transparent attitude to uphold justice.