Social Responsibility
I.Purpose
This whistleblowing policy is designed to encourage employees of the Company (together with its subsidiaries, the “Group”), and related third parties (e.g. customers, suppliers, etc., who deal with the Company) (“Third Parties”) to raise concerns, in confidence, about misconduct, malpractice or irregularities in any matters related to the Company.
II.Responsibility to Report
To set forth our specific obligations, the Company has an Employee Handbook (“Employee Handbook”). The Employee Handbook provides the guiding principles for all employees to take the right action, behave with integrity and honesty, treat people fairly, respect diversity, obey all laws, accept accountability, communicate openly, and always behave in a way that is beyond reproach.
Under the Employee Handbook, employees are required to promptly alert their supervisor or higher management of business and work-related situations that could be damaging to the Company or cause harm to others such as emergencies, crimes, accidents, irregularities or other unexpected events; and to take reasonable action to prevent damage or harm. Employees could be in breach of the Employee Handbook if they assist or authorize others in activities that breach the Employee Handbook, conceal or fail to report any known or suspected breaches by others. Employees and Third Parties may also have a duty to report corruption to the authorities if required to do so by local regulations.
III.Protection
Persons making genuine and appropriate complaints under this policy are assured of fair treatment. In addition, the Group’s employees are also assured of protection against unfair dismissal, victimization or unwarranted disciplinary action, even if the concerns raised turned out to be unsubstantiated. The Group reserves the right to take appropriate actions against anyone (employees or Third Parties) who initiates or threatens to initiate retaliation against those who have raised concerns under this policy. In particular, employees who initiate or threaten retaliation will be subject to disciplinary actions under the Employee Handbook, which may include summary dismissal. Management will support all employees and encourage them to raise concerns without fear of reprisals.
IV.Confidentiality
The Group will make every effort, within its capacity to do so, to keep a Whistleblower’s identity confidential. The Group will endeavor to advise a Whistleblower in advance if his or her identity may become apparent or need to be disclosed. Should an investigation lead to a criminal prosecution, it may become necessary for a Whistleblower to provide evidence or be interviewed by the relevant authorities.
V.Types of Misconduct, Malpractice and Irregularity
It is not possible to give an exhaustive list of the activities that constitute misconduct, malpractice or irregularity covered by this policy. For example, the Group expects all employees to observe and apply the Employee Handbook principles in the conduct of the Group’s business. Employee behavior that is not in line with Employee Handbook principles could constitute a misconduct, malpractice, or irregularity that should be reported. The principles of Employee Handbook relate to:
VI.Reporting and Investigations
a）Reporting Channels
In general, Whistleblowers should make their reports to the Human Resources Department under the Group’s Executive Office (“Group HR”) for review.
For employees, they may prefer to have an initial discussion with his/her manager or local HR representatives. However, the manager or HR must in turn report any potential or actual misconducts, malpractices or irregularities to Group HR. If employees feel uncomfortable doing this (e.g. his/her line manager has declined to handle his/her case or it is the line manager who is the subject of the report), then the employee should contact Group HR. Business partners, suppliers and Third Parties are encouraged to report directly to Group HR.
b）Reports and Supporting Documentation
While the Group does not expect the Whistleblower to have absolute proof or evidence of the misconducts, malpractices or irregularities reported, the report should show the reasons for the concerns and full disclosure of any relevant details and supporting documentation. If he/she make a report in good faith then, even if it is not confirmed by any subsequent investigation, the Whistleblower’s concerns would be valued and appreciated. He/she can make a report as follows: in writing (by email to ethics@lymixin.com or by post) to Group HR using the standard form (Whistleblower Report Form) attached as Annex 1 of this policy.
Manager/HR representative is required to summit to the Group HR a log summary of all received/recorded reporting forms and corresponding actions taken on a regular basis.
Group HR will implement safety custody procedures to save guard all reporting forms to protect confidentiality of all email address and phone numbers.
c） Investigations
Group HR will assess every report received through the general reporting channel described in section VI (a) above to decide if a full investigation is necessary. If there is sufficient evidence to suggest that a case of possible criminal offence or corruption exists, the matter will be reported by Group HR to the relevant local authorities (for instance, Independent Commission Against Corruption (“ICAC”) in Hong Kong).
In some situations (e.g. in case of possible criminal offence), Group HR may have to refer the matter together with the relevant information to the authorities. Please note that once the matter is referred to the authorities, the Group will not be able to take further action on the matter. 。
Group HR will prepare a full report on the investigations conducted without revealing the identity of the Whistleblower. For confirmed cases of Employee Handbook violations, the normal process is for the responsible line management (with the assistance of HR representative) to determine what disciplinary action is appropriate and make a recommendation to the Group HR for final decision.
VII.False Reports
If a Whistleblower makes a false report maliciously, with an ulterior motive, or for personal gain, the Group reserves the right to take appropriate actions.
VIII.Anonymous Reports
As the Group takes reporting of misconducts, malpractices, and irregularities seriously and wants to conduct warranted investigations of both potential and actual violations, it is preferred that these reports are not made anonymously. However, it is recognized that for any number of reasons, employees or Third Parties may not feel comfortable reporting potential violations directly to Group HR. In these cases, anonymous reports may be submitted to the Group HR.
IX.Record Retention
Records shall be kept for all reported misconducts, malpractices, and irregularities by the relevant parties in the Group under Section VI (a) above. In the event a reported irregularity leading to an investigation, the party responsible for leading / conducting the investigation shall ensure that all relevant information relating to the case is retained, including details of corrective action taken for a period of six years (or whatever other period may be specified by any relevant legislation).
X.Responsibility for Implementation and Review of Policy
This policy has been approved and adopted by the Board of the Company. The Audit Committee has been delegated overall responsibility for implementation, monitoring and periodic review of this policy and any matter raised must be put forward to the Board for approval. In addition, the Audit Committee has delegated the day-to-day responsibility for administration of the policy to the Group HR. If there are any questions about the contents or application of this policy, please contact Group HR.
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