In order to strengthen corporate governance and promote the Company’s sound operations, TSC has designed and implemented internal control systems in accordance with the "Regulations Governing Establishment of Internal Control Systems by Public Companies" and the " Key Points for Implementation of Internal Inspection of Public Institutions Affiliated to the Ministry of Economic Affairs " These measures include the establishment of the "The Internal Control System of TSC," "Guidelines for Internal Audit Practices," and complete documents regarding internal control system for all units to follow. These documents regulate the professional ethics, responsibilities, and operational procedures of internal audit staff. To adapt promptly to changes in the internal and external environment. The Inspection Office of the BOD inspects and reviews deficiencies in the internal control system, as well as evaluating the effectiveness and efficiency of operations, in accordance with the regulations and key points for implementation. it also provides timely improvement suggestions to ensure the continuous effectiveness of the design and implementation of internal control systems.

　　A new internal control system document was added, 61 were revised, and 9 were abolished in 2023. The implementation of the internal control system is also included in the annual performance assessment to promote the self-management and implement self-monitoring mechanism by all units. In addition, the Inspection Office of the BOD has completed the on-site audit of the 19 internal units in accordance with the 2023 internal audit plan. It has also conducted special audits and ad-hoc audits of related operations. After the audit results are reviewed and approved by the signing chief, they are not only communicated to the audited units for necessary improvements within a specified period but also provided to each independent director for review in accordance with regulations. The Chief Auditor attends monthly board meetings to understand the board's decisions regarding organizational and control matters and to report on audit business. Furthermore, to enhance communication with independent directors, the audit activities are reported annually to the Audit Committee.

　　All TSC employees abide by the “Ministry of Economics Employee Integrity and Ethics Rules.” To guide the behavior of personnel in accordance with ethical standards and ensure that the company's activities are in line with social norms, we have also established the "Codes of Ethical Conduct of TSC," which applies to TSC personnel, including directors (including independent directors) and managers (including the president, vice presidents and directors of various units). The implementation of this code is reported to the board of directors annually in October by Department of Human Resources in collaboration with Department of Ethics, aimed at reducing the likelihood of fraud occurrences.

　　To maintain employees' integrity and discipline, additional guidelines such as the“Employees Normal-Time and Project Evaluation Guidelines,” “Working Rules for Practitioners,”“Service Guidelines for Practitioner,” and “Practice Guidelines for Corporate Governance” are stipulated. We allow practitioners to understand the company's code of conduct by the internal network, posting propaganda of laws and implementing education and training. Reports of corruption cases are handled by the independent ethics personnel of each unit or designated personnel assigned by the unit. In addition, there are designated phoneline, mailbox, fax number, and email address set up to provide channels for reporting. 

　　We ensure the confidentiality of reported cases to encourage our employees or the public to report on illegality or violations so as to prevent malpractice and urge relevant units to make improvement in a timely manner. TSC has established the Key Points for the Implementation of Confidentiality of Whistleblowing Cases in the internal control system in accordance with the Personal Information Protection Act, the Anti-Corruption Informant Rewards and Protection Regulation, Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies, and TSC’s Code of Ethical Conduct, which serve as the basis for the establishment of an operation process for each unit to handle whistleblowing cases with the principles of confidentiality, legality, rationality, promptness, certainty, and prudence. The aforementioned Key Points were renamed as the "Implementation of Confidentiality of Whistleblowing Cases and Whistleblower Protection" in November 2023, with additional content related to whistleblower protection.

　　In accordance with the "Act of the Establishment and Management of the Government Employee Ethics Units and Officers," ethics units were established in the headquarters and various units to regularly review integrity risks and fulfill the functions of promoting benefits and eliminating malpractices. In 2023, a total of 16 integrity reports were held. Additionally, various reporting channels have been established, such as dedicated reporting mail box, reporting hotlines, and fax lines, for the public to report grievances and petitions. This information is made publicly available in bidding notice and the official website of Taiwan Sugar Corporation.

　　To implement the early warning of anti-corruption and corruption risk management behavior, Department of Ethics conducted a corruption-related risk assessment for 17 units under it in 2023, which accounted for 100% of the Company’s total number of business locations. The risk profile of the organization is examined one by one (including incidents and personnel), and the risk responses and improvement shall be researched and proposed while the agency integrity risk assessment report shall be written. It is indicated in the risk report that no major corruption cases occurred at TSC in 2023.

　　In order to publicize anti-corruption policies and related procedures, the Department of Ethics and Ethics Offices of all units involved enabled the Company's employees to understand relevant anti-corruption regulations and make anti-corruption efforts by multi-advocacy methods such as organizing the relevant anti-corruption education and training, holding a workshop of manufacturers, inviting experts and scholars to give special lectures, issuing and disseminating documents and using electronic information equipment for the internet advocacy and questionnaire surveys.

　　In 2023, a total of 29 sessions of anti-corruption advocacy exercises were organized, including " Reserve personnel for grassroots and mid-level supervisors (the integrity qualities a supervisor should possess)," " Integrity and Rule of Law Training Workshop," "(1) Analysis of key points in property declaration for public officials, (2) Key analysis of conflict of interest avoidance for public officials," and "(Let us learn about unlawful gains and offering convenience to people) Promotion of Laws and Regulations " seminars. These events achieved 4,065 attendances in total (including 87 attendances from senior executives). The contents of the United Nations Convention against Corruption (UNCAC), Integrity Management, Integrity and Ethics Directions, Act on Recusal of Public Servants Due to Conflicts of Interest are advocated to enhance the employees’ awareness of integrity and rule of law to prevent the occurrence of corruption.

　　The monthly anti-corruption e-magazine for Integrity at TSC is sent to all employees via email. The contents include publicity of rule of law, Ethics Guidelines for Employees Belonging to Ministry of Economic Affairs, Maintenance of Official Secrets Advocacy, Consumer Protection Advocacy, and Anti-fraud Advocacy to help the employees establish the correct legal understanding.