Annual Report 2020

China Merchants China Direct Investments Limited Annual Report 2020 81 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT (CONTINUED) SOCIAL RESPONSIBILITY (CONTINUED) Responsible Investment (continued) Intellectual Property Rights Protection Although the Company does not have products or services provided to stakeholders, all intellectual property right infringement is not allowed, including but not limited to the download and usage of pirated software, the use of intellectual property without the owners’ consent. Anti-corruption Commitments are made by the Company and the Investment Manager to maintain the highest level of integrity and accountability as instructed by the anti-bribery and anti-corruption guidelines. All Directors of the Company and all Directors and staff of the Investment Manager are expected to act on the highest ethical, personal and professional standard. The Investment Manager strongly encourages its employees to report any business irregularities and misconducts. Whistle-blowing channels and procedures are provided for the purpose of such reporting. Hence, employees, with anonymous identity, can raise concerns without the fear of retaliation. Any form of retaliation against the whistle-blower is prohibited. Number of concluded legal cases regarding corrupt practices brought against the Company or CMCIM and its employees during the Reporting Period and the outcomes of the cases: Number of concluded legal cases regarding corrupt practices Brought against the Company and CMCIM 0 Brought against CMCIM’s employees 0 The Board is responsible for monitoring the effectiveness of the whistle-blowing procedures for the Company’s and the Investment Manager’s stakeholders. The procedures are reviewed and updated as and when required. The Board is also responsible for ensuring a proper independent investigation being conducted regarding the matters and there are proper follow-up actions. New staff of the Investment Manager and newly appointed Directors of the Company are required to take induction courses with contents including anti-corruption polices, Securities & Futures Ordinance (Cap. 571, Law of Hong Kong), Listing Rules, etc. within one month of their employment/appointment. These are tailored to the responsibilities and the obligations of the staff and the Directors. Over the course of employment/terms of tenure, the staff of the Investment Manager and Directors of the Company shall receive continuous training covering topics of their responsibilities which also include internal and external updates on anti-corruption practices. These trainings can be in various form, such as video briefing, internal seminar and webinar. During the Reporting Period, there were no cases of non-compliance noted in relation to corruption related laws and regulations, including but not limited to the Prevention of Bribery Ordinance (Cap. 201, Law of Hong Kong).