Hon Hai Technology Group (Foxconn) has set a corporate governance code of practice, for the protection of shareholders’ rights, to strengthen the functions of the Board of Directors, respect the interests of stakeholders, enhance the transparency of information and relevant rules, and strives to establish effective corporate governance frameworks:
A. Execution Principles
Foxconn attaches great importance to corporate governance and handles it in accordance with the following principles, with a view to implementing corporate governance in the mode of the highest international standards:
B. Corporate Governance Implementation
Two committees are formed under Foxconn's corporate governance framework, the Audit Committee and Remuneration Committee.
C. Scope of Operation and Implementation of the Corporate Governance, Corporate Social Responsibility and Corporate Integrity Unit
Foxconn has assigned dedicated personnel in charge of corporate governance related activities, including: Providing necessary information to the Board of Directors to act upon; attending to board meetings and related issues; execution of Company registrations and/or amendments; creation of board meeting and shareholder meeting minutes and records.
In 2007, Foxconn set up the FGSC Committee. The Committee chairman is a vice president. Given its importance to the Company, we set up three groups which are headed by three executive managers, who serve as vice chairmen of the committee. The director-general is in charge of the daily operation of the Committee. We currently have 6 full-time officers in charge of CSR promotion and supervision of specific affairs. Each Business Group of Foxconn has set up a CSR branch; there are more than 400 part-time officers in charge of the CSR affairs of the Business Groups. At the end of each year is an annual CSR meeting to formulate CSR work plans and goals for the coming year. After being approved by the Director General to start promoting, regular internal audits of each plant’s annual CSR are carried out, to ensure that the plants are in line with the relevant CSR policies of the Company. Each Business Group also periodically reviews the operation of branch performance and reports to the Committee with issues concerning stakeholders for the year. Then the relevant written materials are compiled to produce an annual CSR report, which is submitted to the CSR chairman and Board of Directors.
Foxconn has set up a dedicated Corporate Integrity unit through the Safety Department. In order to advocate for honesty and investigate corruption matters, reporting to the Board of Directors regularly.
D. Information Disclosure Framework
Foxconn has established extensive information disclosure frameworks, ensuring shareholders receive timely and correct information from the Company. The disclosure in principle is to be fair, transparent, and provide information regarding operations, finance, board agendas, and management tenets policies.