TSMC Annual Report 2012 :: Corporate Social Responsibility

Social Responsibility Implementation Status as Required by the Taiwan Financial Supervisory Commission

Item	Implemention Status	Non-implentation and Its Reason(s)
1. Cmplementation of Corporate Governance		None
(1) Corporate social responsibility policy and performance evaluation	(1) Please refer to “Corporate Social Responsibility” of this Annual Report.
(2) Dedicated organization for the promotion and execution of corporate social responsibility	(2) TSMC follows the ten principles of corporate social responsibility set by the Chairman, Dr. Morris Chang. Each unit in TSMC incorporates corporate social responsibility principals into daily operations. All issues of stakeholders' concerns are collected regularly or through ad hoc communication channels. Each unit will assess and identify material issues, and incorporate them into execution plans and daily operations.
(3) Regular training and promotion of corporate ethics among employees and the Board of Directors, and integration with the employee performance appraisal system	(3) Please refer to "Code of Ethics and Business Conduct" of this Annual Report.
2. Sustainable Environment Development	Please refer to "Environmental Protection" of this Annual Report.	None
(1) Commitment to improving resources utilization and the use of renewable materials
(2) Environmental management system designed to industry characteristics
(3) Dedicated environmental management unit or personnel
(4) Company strategy for climate change, energy conservation and greenhouse gas reduction
3. Promotion of social welfare		None
(1) Compliance with labor regulations, international recognized human right principles, protection of employee rights and employment fairness, and appropriate management measures and procedures	(1) Please refer to "Employees" of this Annual Report.
(2) Safety and health in working environment	(2) Please refer to "Safety and Health" of this Annual Report.
(3) Mechanism of periodical communication with employees, and reasonable	(3) Please refer to "Employees" of this Annual Report.
(4) Disclosure of consumer rights policy, and official channel for consumer complaints	(4) Please refer to "Customer Trust" of this Annual Report.
(5) Collaboration with suppliers	(5) TSMC brought together fab operations, materials management, risk management, and quality system management in an internal committee dedicated to managing our supply chain. The focuses of the committee are risk mitigation and supply chain improvement. The steering team, including a senior vice president and managers, sets goals annually and reviews progress each quarter. The committee's working team assists suppliers in lowering production and transportation risks by sharing risk management practices and helping suppliers improve quality systems, green procurement, protection of the environment, and safety. At the same time, we monitor the financial situation of key suppliers through regular communication or public information, and the inventory of supply chain, with corresponding backup plans. The working team holds monthly meetings to monitor progress and actively handle suppliers' issues. Please refer to TSMC's website for additional information: "http://www.tsmc.com/english/csr/supply_chain_management.htm"
(6) Participation in community development and charities through commercial activities, donations or volunteers	(6) Please refer to "Corporate Social Responsibility" of this Annual Report.
4. Enhancement of Information Disclosure	TSMC has published "Corpoarte Social Responsibility Report" since 2008, which has been verified by third party in compliance with the requirements of Global Reporting Initiative (GRI) G3.1 level A+ and AA1000AS: 2008 standard.	None
(1) Disclosure of corporate social responsibility related information with significance and reliability.
(2) Published corporate social responsibility report and disclosure of implementation of corporate social responsibility
5. If the company has established its corporate social responsibility code of practice according to "Listed Companies Corporate Social Responsibility Code of Practice, " please describe the operational status and differences. TSMC does not establish the code for corporate social responsibility. For our corporate social responsibility operational status, please refer to "Corporate Social Responsibility " of this Annual Report and our corporate social responsibility related information in our website: http://www.tsmc.com/english/csr/index.htm
6. Other important information to facilitate better understanding of the Company's implementation of corporate social responsibility (e.g., environmental protection, community participation, social contribution, social services, social welfare, consumers' rights, human rights and safety and health): Please refer to TSMC's website for our corporate social responsibility implementation status: http://www.tsmc.com/english/csr/index.htm
7. Other information regarding products or "Corporate Social Responsibility Report" which are verified by certification bodies:
(1) TSMC obtained Integrated Circuit carbon footprint and Type 3 Environmental Product Label verification, which comply with PAS2050 and ISO14025 standards.
(2) TSMC Corporate Social Responsibility Report is compliant with the requirements of Global Reporting Initiative (GRI) G3.1 level A+ and AA1000AS:2008 standard.