Sustainable Governance

台All directors, senior management, supervisors, and employees at Taiwan HQ, Shenzhen branch, and Suzhou facility are required to sign the "Merry Business Conduct and Professional Ethics Code." Additionally, new employees at these locations, as well as Merry Vietnam, undergo on-site training related to business integrity upon joining, ensuring their understanding of Merry' commitment to promoting integrity and preventing dishonest behavior. This serves as a firm commitment to upholding the highest standards of legal and ethical conduct. New employees at Merry are required to participate in basic legal training courses related to business integrity, ensuring they fully understand the company's commitment to ethical practices, policies, and prevention of dishonest behavior. In 2023, six training sessions related to business integrity issues were held for directors and employees at the Taiwan headquarters. These sessions covered topics such as intellectual property protection, contract signing authorization, insider trading, trade secrets, anti-corruption advocacy, and professional ethics. In addition, relevant departments and corporate governance units regularly disseminate information related to business integrity to all employees and directors via email.

The Ethical Management Team has long been advocating for anti-corruption and anti-bribery measures within the company. In 2023, the Board of Directors approved the MERRY Anti-Corruption, Anti-Bribery, and Anti-Money Laundering Policy, establishing corporate governance standards and risk management mechanisms. This policy formally declares MERRY's zero-tolerance stance against corruption and bribery. In response to the increasing international emphasis on anti-money laundering, the policy also aims to prevent money laundering, tax evasion, and sanctions violations. This protects MERRY from potential losses associated with money laundering activities and safeguards against harm to society and livelihoods. The Anti-Money Laundering Policy demonstrates MERRY's determination to combat financial crimes, upholding its core values of sustainable operation and fulfilling its responsibilities as a global corporate citizen.

Reporting and Protection Mechanisms

To address unethical or illegal conduct, Merry has established relevant measures in its "Business Integrity Operation Procedures." These procedures clearly define policies against bribery, corruption, and facilitation payments, and provide reporting channels for whistleblowing on unethical or improper behavior. Members of the BEthical Management Team are responsible for receiving reports from stakeholders, and a written commitment is made to protect whistleblowers from any retaliation. As of the end of 2023, Merry received a total of one report through its independent reporting platform, internal website mailbox, and hotline. After investigation by relevant departments, the reported content was not found to be a violation of business integrity, and therefore no reports of unethical conduct were received.

• e-mail : integrity@merry.com.tw
• Phone： 04-2359-0811#118000
• Independent Whistleblower Platform： Link

To ensure compliance with the laws and regulations of the countries where it operates, as well as all customer requirements, MERRY has established a legal compliance management system referencing ISO 19600:2014 Compliance Management Systems. The Legal and Patent Department is responsible for collecting, evaluating, implementing, and monitoring compliance matters. These matters include occupational safety and health, labor/social responsibility, information security, energy, environment, medical devices, commercial/anti-bribery, finance and taxation, intellectual property, fair trade/antitrust, and products, encompassing a total of 282 regulations across 11 major categories. Department heads are tasked with confirming that their department's operating procedures align with relevant laws and regulations. In 2023, there were no significant violations of related laws resulting in penalties.