Chang Hwa Bank|Corporate Social Responsibility-Business Integrity

For the best experience, change the screen to portrait mode.

:::

Business Integrity

Policy and Commitment

The Bank is committed to formulating policies based on the management philosophy of integrity, transparency, and responsibility, and to implementing them in internal management and external business activities.
The Bank also has "Ethical Corporate Management Best Practice Principles", "Code of Ethical Conduct", "Employee Code of Conduct", and "Complaint Handling Regulations", which specify that in carrying out their business, Bank personnel shall engage in business activities based on the principles of fairness, honesty, good faith and transparency, and shall comply with the highest ethical standards and legal norms, so that the Directors, Managers and employees of the Bank understand the Bank's integrity and ethical values (including operating in good faith, preventing conflicts of interest, avoiding profit opportunities and confidentiality principles, etc.) and strengthen compliance with the law to establish good corporate governance, risk management mechanisms and internal control systems, actively prevent and detect dishonest behaviors, and ensure the reliability of reporting pipelines and financial information to deepen the integrity of the corporate culture and create sustainable development of the operating environment.
The Bank's "Sustainable Development Best Practice Principles" stipulates that while operating its business, the Bank shall actively practice sustainable development, including the implementation of corporate governance, the development of a sustainable environment, the maintenance of social public welfare and the enhancement of information disclosure on sustainable development. As a sustainable direction and guideline for all colleagues in the development and execution of their business, the Bank has Human Right Policies, which commits and regulates the Bank's responsibility to respect and protect human rights, and to construct an honest, fair, respectful and open working environment. All employees of the Bank and its subsidiaries are required to incorporate human rights considerations in all aspects of the operating value chain, including human rights in the workplace, health and safety in the workplace, freedom of association, personal privacy, dishonest behavior and the promotion of human rights policies.
Chang Hwa Commercial Bank Ethical Corporate Management Best Practice Principles
Chang Hwa Bank Code of Ethical Conduct

Goals and Targets

In the process of engaging in commercial activities, the Bank's personnel shall proceed in a fair, honest, and transparent manner, and shall not directly or indirectly provide, promise, request, or accept any improper benefits, while avoiding engaging transactions with suppliers and customers involved in unethical conduct.
The Bank's Ethical Corporate Management Best Practice Principles explicitly prohibits bribery, acceptance of bribes, acceptance of improper benefits, provision of illegal political contributions, improper charitable donations or sponsorships, infringement of intellectual property rights or business secrets, unfair competitive practices, insider trading, products and services that infringe on the rights and interests of others, and requires the establishment of relevant prevention rules, reporting procedures and handling disciplinary action.

Responsibilities

The Sustainable Development Committee, which is composed of directors and senior managers of the Bank, acts as the unit responsible for operating with integrity and designates the Compliance Division to be responsible for the handling of matters related to operating with integrity and to assist in supervising the implementation of the Bank's regulations on the prevention of dishonesty, and to report to the Sustainable Development Committee and the Board of Directors on a regular basis.
The directors and senior executives of the bank have issued the "Statement of Compliance with the Ethical Management Policy" , promising to abide by the Ethical Corporate Management Best Practice Principles, relevant regulations on listing and OTC listing, and other laws and regulations related to integrity management; employees have issued "Commitment Letter of Ethic and Integrity" agreeing to strictly abide by the Ethical Corporate Management Best Practice Principles, Employee Code of Conduct and relevant business regulations.
The Bank's "Employee Code of Conduct" requires all employees to carefully read the provisions of the code and shall sign the "Statement of Complying with the Code of Conduct of Chang Hwa Commercial Bank", affirming that they shall comply with relevant regulations and uphold high ethical standards and moral codes.( If employees have any doubt and suspicion about "Employee Code of Conduct," they may consult the direct supervisor of the unit, the Compliance Officer of the unit and Compliance Division according to their position.)

Whistleblowing Mechanism

The Bank has established the whistleblowing system, and discloses relevant reporting channels on the official website.

Whistleblowing Channel

Whistleblower System Channels

Email: chb0110@chb.com.tw
Hotline: (02)2562-0116
Postal Address: Compliance Division 8F., No.57, Sec. 2, Zhongshan N. Rd., Zhongshan Dist., Taipei City 104.

The public may report crime, fraud or violation by Bank personnel via email, hotline, or written reports. Employee may also submit reports directly through the internal employee whistleblowing system.

Whistleblowing Handling Procedure

Case Acceptance:
In accordance with Article 34-2 of "Implementation Rules of Internal Audit and Internal Control System of Financial Holding Companies and Banking Industries" and "Public Interest Whistleblower Protection Act", the Bank formulated "Complaint Handling Regulations", clearly defining investigation duties, conflicts of interest, whistleblower protection, and file management. The Bank established the "Complaint Review Committee," with the Chief Compliance Officer as the convener and the EVP & Supervisor of Human Resources Division as the deputy convener. Non-whistleblowing cases are forwarded to responsible units within 10 business days.
Case Investigation:
If any staff member at any level of the Bank is reported for violating financial regulations or engaging in unethical business practices, the "Complaint Review Committee" convener will convene an investigation team or assign the Compliance Division to investigate. Major cases meeting the "Chang Hwa Bank Major Contingency Incident Handling Procedures" or involving significant breaches of integrity may be referred to the Audit Division upon the Chairperson's approval. Whistleblower identities and report details remain strictly confidential, unless required by law, official investigations, or already public.
Case Review:
Once a report is confirmed true by the "Complaint Review Committee", relevant units must review internal controls and implement improvements. The persons reported and relevant persons involved shall be ordered to stop their misconduct, disciplined in accordance with personnel management regulations, and, if necessary, subject to legal damage claims or referred to judicial authorities.
Regular Reporting:
The Compliance Division shall compile the investigation reports, review results, improvement measures submitted by relevant units, and other relevant materials, and report to the Audit Committee and the Board of Directors on a regular basis.

Punishment and Rewards for Business Integrity Violations

The Bank adopts a zero-tolerance policy for business integrity violations. Violators shall be disciplined based on severity under relevant laws and personnel management regulations, with deductions applied to annual unit and manager evaluations. Following review by the Bank's Personnel Review Committee, penalties shall be imposed per the Bank's Employees Reward and Discipline Implementation Regulations.

Assessment Mechanisms

Internal Risk Assessment and Management：

Unethical Behavior Assessment

The bank conducts bank-wide unethical behavior assessment regularly each year, analyzing and evaluating the unethical conduct risks of each business activity of all departments of the head office and overseas branches, including dishonesty and internal fraud; 100% of all units are covered in the evaluation.
As per the Bank's 2025 Unethical Behavior Risk Assessment results, "Misappropriation of assets" and "The products and services provided directly or indirectly harm the rights and interests of financial consumers or other stakeholders when they are designed, developed, introduced, provided or sold" among the existing risks bears a higher risk of unethical conduct.
Each department shall analyze business activities with a higher risk of unethical conduct within the scope of its responsibilities, review the adequacy and effectiveness of the relevant regulations and risk control supervision and balance mechanisms, formulate and strengthen plans to prevent unethical conduct, including operating procedures, code of conduct, and education and training, thereby establishing an effective accounting system and an internal control system.

Performance of Business Integrity
The Compliance Division regularly compiles the Bank's ethical management performance, including the results of internal risk assessments, into a report, and submits it to the Sustainable Development Committee and the Board of Directors for reference in formulating and executing the Bank's internal audit plan.
►The Performance of Business Integrity report for 2025 was submitted to the 14th meeting of the 3rd Sustainable Development Committee and the 35th meeting of the 27th Board of Directors on 12 February 2026 and 26 February 2026, respectively, and has been disclosed on the Bank's official website.

External Business Establishment

Before establishing a business relationship with others, the Bank shall first assess the integrity of the agent, supplier, customer, or other transaction counterparties in accordance with the Bank's relevant rules, and incorporate the ethical management policy and relevant regulations into the contract terms upon the signing of the contract.

Education and Training

The Bank regularly organizes education, training and publicity related to integrity management. In 2025, the "2025 Annual Integrity Management and Code of Important Conduct Promotion Course" was held. The number of people who completed the training was 6,883, and the training completion rate was 100%.
To implement relevant values and legal norms, the Bank conducted "The bank's legal compliance system and the code of ethical conduct" training course for new recruits in 2025, with a total of 551 participants.

Reporting/Litigation/Punishment

In 2025, it was found that a former employee of the Tantzu Branch had improperly performed ATM cash replenishment and cash unloading operations by placing reserve banknotes into cash cassettes without conducting the required count, and by failing to count cash under video surveillance as required. Consequently, the regulatory authority issued a correction order in accordance with Paragraph 1, Article 61-1 of the Banking Act of the Republic of China. The personnel involved were disciplined and dismissed in accordance with regulations, and a deficiency analysis was conducted alongside the implementation of corrective actions.

In 2025, the Bank was not involved in any legal proceedings due to fraud, insider trading, antitrust, anti-competitive behavior, market manipulation, corruption, or violation of other financial regulations.
In 2025, there have been no instances of illegal political contributions, inappropriate charitable contributions or sponsorships.

The Third-Party Verification of Business Integrity and Code of Conduct

The Bank complies with the "Implementation Rules of Internal Audit and Internal Control System of Financial Holding Companies and Banking Industries," with accountants regularly auditing the internal control system and the implementation of the personal data protection system. In 2024, the Bank received the "Excellence" certification in CG6014(2023) Corporate Governance System Evaluation by the independent third party, Taiwan Corporate Governance Association.
In 2025, the Bank passed the certification of "ISO 22301 Business Continuity Management System", "ISO 27001 Information Security Management System "and "BS 10012 Personal Information Management System", and annually entrusts an independent third party to conduct information security assessment and overall information security implementation compliance assessment.
In 2025, the Bank has passed the certification of "ISO 14001 Environmental Management System" and "ISO 45001 Occupational Health and Safety Management System".
For measures to prevent money laundering and combat terrorism, the Bank annually entrusts independent third-party auditing and accounting firms to conduct project audits, issues the "2025 Statement on Internal Control System for AML/CFT", and uploads it on the Bank's official website in accordance with regulations.