Realtek business units are composed of the Connected Media Business Group, Communications Network Business Group, Computer Peripheral Business Group, Multimedia Business Group, Smart Interconnect Business Group, R&D Center, and Corporate Technology Center. Other units include the Intelligent Decision Research Center, Supply Management Center, Quality Management Division, Finance Division, Information Technology Division, Administration Division, and Occupational Safety & Health Center.
Realtek believes that strict adherence and enforcement of business integrity and ethics are necessary ingredients for sustainable operations and for building winning relationships with customers. The Company adhere the ‘Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies’ and the ‘Corporate Governance Evaluation Indicators’ issued by the TWSE Corporate Governance Center. It formulates the ‘Ethical Corporate Management Policy’, the ‘Ethical Corporate Management Best Practice Principles’, the ‘Procedures for Ethical Management and Guidelines for Conduct’, the ‘Employee Code of Conduct’, the ‘Code of Ethical Conduct’, and other important internal regulations. The Board and management proactively implement ethical corporate management policies during internal management and business activities, and request that all employees participate and comply. Related information on ethical management is available on the Realtek company official website to inform board directors, employees, and stakeholders to ensure ethical corporate management principles are followed, prevent conflicts of interest, avoid improper benefits, prevent rights infringements and confidential information leakage, and uphold fair competition and trade. Operational audits are performed by an internal audit unit and results are reported to the Board regularly. In 2022, Realtek did not have any legal proceedings aarising from anti-competitive behavior.
To implement Realtek’s Code of Ethical Conduct and ethical management, and encourage stakeholders to report incidents that violate business integrity or ethics, we established the ‘Regulations Governing Realtek Internal (External) Personnel Whistleblowing on Illegal or Immoral Behaviors’. The procedure ensures that reporting channels remain open and protects the privacy and safety of whistleblowers. In 2022, there were no complaints of illegal activities or unethical conduct filed against the Company or employees, and there were no reports of corruption or bribery at any of the Company’s operational locations.
Realtek advocates the policies of business integrity, anti-corruption, and anti-bribery to employees through training camps for newcomers and seminars for executives to enhance their awareness of ethical management. Employees (including contact employees) can submit application for learning through digitalized materials at any time. In 2022, we provided educational and training classes on ethical management totaling 61.8 hours, with a total attendance of 1,390 people.
The audit unit of Realtek is an independent department under the Board of Directors. Internal audit officers shall regularly compile audit results and report regularly in Board meetings, and make ad hoc reports when needed to the chairman and president. Realtek’s internal audit unit appoints full-time auditors who undergo continuing education and training to ensure suitability. Annual audits, which are carried out based on plans approved by the Board, shall ensure the effectiveness of self-reviews and internal controls executed by internal units and subsidiaries. Based on the self-evaluation reports, the audit unit issues a statement on internal control mechanisms to the Board and the Company president. In 2022, this internal control statement did not find any abnormalities.