Explain media reporting

Subject: Explain media reporting

Contents:

1.Date of occurrence of the event: 2014/01/21

2.Name of the reporting media: 

United Evening News/CTnews/Liberty Times/Apple Daily/CNA NEWS

3.Content of the report:

Alleged collective bribery, Hon Hai former senior executives was interviewed by search.

4.Countermeasures:

We can confirm that we have been working closely with the Taiwan High Prosecutors Office for some time in the investigation of allegations of violations of Taiwan law and our company's Code of Conduct in the years 2010 and 2011 that were linked to some former members of our Taiwan-based procurement office. This is a matter that we brought to the attention of authorities in both Taiwan and Mainland China in September 2012 as we sought their help in pursuing an investigation based on the results of our own internal audit. We would like to thank the authorities in both Taiwan and Mainland China for their cooperation and the Taiwan High Prosecutors Office for their relentless effort in bringing the case to this important stage.We can also confirm that our internal investigation found these violations to be limited to the procurement of consumables and accessory equipment related to a small part of our business. The employees in question are no longer with our company.The actions taken today by law enforcement agencies in Taiwan represent the culmination of a lengthy investigation and we will continue to cooperate fully with the authorities as long as required. Since this is now a matter before the courts, we are not able to comment further on this specific case, but we can say that the integrity of our employees and suppliers is something we take very seriously. It is for that reason that we have always asked our employees and our suppliers to sign and abide by our company Code of Conduct governing proper business practices that include agreement that they will not engage in any corruption, bribery, or unfair business dealings.The discovery that a small group of employees and suppliers violated our Code of Conduct is very disappointing. We have asked our suppliers to work closely with the authorities in this case so that those found guilty of any illegal actions are prosecuted to the fullest extent of the law.Foxconn holds our company, our employees, and our suppliers to the highest standards in responsible business practices and the results of our internal audit have driven a number of enhancements to our company's procurement policies to ensure that such violations cannot be repeated.