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Business ethics code of conduct and employee reward and punishment system
The Company will adopt a series of measures to ensure that our employees are in compliance with our social values and business ethics, which include regular trainings, staff’s compliance-linked remuneration system, incorporating compliance and code of conduct into employee’s appraisal, offering rewards to employees with proper compliance, imposing penalties to any act in breach of business ethics, etc. In addition, the Company will provide necessary trainings and educations to the employees to arouse their awareness of being in compliance with code of conduct, which in turn ensuring the Company’s reputation and interests, as well as promoting the Company’s sustainability: Details are as follow:
1. Reward and penalty measures
To ensure employees’ acts are in compliance with the Company’s requirements and standards, the compliance of employees is incorporated into the appraisal for remuneration and performance, and the following reward and penalty measures are adopted:
a) For any employees who are non-compliance with and in breach of our business ethics, their marks obtained in the appraisal will be deducted and they will be imposed with corresponding penalties including deduction of performance-based bonus, deduction of share awards and hindrance to promotion. Meanwhile, employees will receive necessary trainings and education to help them rectify their mistakes, comply with our code of conduct, laws and regulations.
b) For employees who have been performing well in terms of compliance, rewards will be offered, including salary increase, promotion, bonus, share awards, etc. Employees’ compliance will be appraised and evaluated on a regular basis, rewards will be granted to employees without standing performance so as to motivate them to abide by our code of conduct, laws and regulations.
Compliance and code of conduct have been included in our employee appraisal system to ensure the employees act in compliance with our requirements and standards. Details are as follows:
a) Appraisal standard: specific appraisal standards in terms of compliance and code of conduct are stipulated, which include the awareness of employees to compliance, the status of their compliance with the code of conduct, and their working performance, etc.
b) Appraisal cycle: Employees’ compliance will be appraised and evaluated on a regular basis, usually in every month or every quarter.
c) Way of appraisal: various ways of appraisal will be adopted, including self-appraisal, appraisal by superiors or colleagues, etc.
2. Warning, Dismissal, Zero Tolerance Policy
For different level of non-compliance with business ethics, the company has formulated specific penalties. We will adopt different measures to handle the issue, details are as follows:
a) Minor non-compliance: for any acts such as non-compliance with the Company’s regulations relating to daily operation, non-performance of duties, etc., oral warning will be sent as penalty.
b) General non-compliance: for any acts such as long-term noncompliance of the Company’s regulations relating to daily operation, written disclosure of the Company’s business secrets without causing any loss, etc., measures like written warning and bad comments on performance appraisal will be imposed as penalty.
c) Major non-compliance: for any acts such as provision of false information, negligence of duties, disclosure of important business secrets which causes loss to the Company, etc., measures like notice of criticism, announcement on intranet, demotion, salary decrease, relegation will be imposed as penalty.
d) Serious non-compliance: any acts which are violation of the Company’s business principles, such as bribery and corruption, serious fabrication of statistics, misappropriation of corporate assets, malicious disposal of the Company’s business secrets, etc., measures like dismissal and pursuit of legal accountability will be imposed as penalty.
While imposing warning and penalty, we will provide necessary trainings and educations to our employees to help them rectify their mistakes, comply with our code of conduct, laws and regulations. Our ultimate goal is to ensure employees maintain high level of business ethics.
We believe that the incorporation of employees’ compliance into remuneration and performance appraisal system will help enhance employees’ awareness of being in compliance with code of conduct, promoting the Company’s compliance management and sustainability. Reasonable rewards and penalties will help protect the Company’s reputation and interests. Meanwhile, we will continue to evaluate, improve and optimize our compliance performance and reward and penalty system to ensure its fairness, transparency and effectiveness.