Ethical corporate management philosophy
CSCC has instituted the Ethical Corporate Management Best Practice Principles and the Procedures for Ethical Management and Guidelines for Conduct, with the aim of implementing ethical corporate management based on the principles of honesty, fairness, trustworthiness, and transparency. Our ethical corporate management policy has been disclosed in our internal rules and regulations and annual reports and on our official website, so that our stakeholders, including managers, employees, suppliers, and customers, can learn about our ethical corporate management philosophy and standards.
Avoidance of conflicts of interest and standards of ethical conduct
With a view to specifying the preventive and response measures for conflicts of interest between CSCC and directors, managers, and employees, we have not only established the Code of Ethical Conduct for Directors, the Code of Ethical Conduct for Senior Executives, and the Code of Ethical Conduct for Employees, but also require them to sign the Employee Confidentiality and Non-Competition Agreement to ensure that the conduct of the aforesaid personnel complies with ethical standards and protect our interests. No cases of avoidance of conflicts of interest were reported at CSCC in 2023.
Regulations on lobbying and invitations to social gatherings
According to CSCC's Guidelines for Handling Gifts and Invitations to Social Gatherings. employees shall refuse or return any gifts from people with an interest in the performance of their duties; in the event that such gifts cannot be returned, employees shall report the gifts to first-level managers or above and send the gifts to the Administration Department for registration and safekeeping.
Fraud prevention
We have purchased employee fidelity bonds for financial personnel in order to protect our company from property losses caused by employees' dishonest behaviors (e.g., theft, fraud, and embezzlement) and reduce moral hazards among financial personnel. In terms of system design, we control the risks of corruption and fraud through employee training, stringent internal control and regulations, and job rotation, along with regular and occasional internal audits. No fraud cases were reported at CSCC in 2023.
Prohibition on political donations
In an effort to ensure that we are politically neutral and does not interfere with or sponsor any political organizations, our Procedures for Ethical Management and Guidelines for Conduct clearly stipulate that we shall not provide political donations. Hence, no political donations were made by CSCC in 2023.
Whistleblowing channels
We have established the Rules for Whistleblowing, Grievances and Disciplinary Actions for Breach of Ethics and set up a whistleblowing hotline and e-mail address accordingly, which are disclosed in a dedicated section on our official website for use by internal and external personnel. Furthermore, we have formulated the relevant handling process for dedicated units, the whistleblower protection policy, and appropriate rewards for whistleblowers. In 2023, we did not receive any internal or external whistleblowing cases while no cases of corruption were reported at CSCC.