TSMC Annual Report >  2015 > Corporate Social Responsibility > Overview

Overview

TSMC Corporate Social Responsibility Policy

TSMC believes a company's corporate social responsibility is to uplift society. To focus TSMC's CSR efforts, Chairman Dr. Morris Chang and the management team, after extensive discussions held in 2015, declared “Uplifting Society” as the Company vision and identified three primary missions: “Acting with Integrity”, “Strengthening Environmental Protection”, and “Caring for the Disadvantaged”. In November 2015, Chairman Chang approved the “TSMC Corporate Social Responsibility Policy” as an official Company document to serve as a guide in developing a CSR procedure, which was completed in December 2015. “TSMC Corporate Social Responsibility Procedure” defines TSMC's CSR scope, the roles and responsibilities of CSR Committee members and management to fulfill the vision and carry out the missions as a good corporate citizen.

TSMC Corporate Social Responsibility Policy

Since its establishment, TSMC has not only strived for the highest achievements in its core business of dedicated IC foundry services but has also actively developed positive relationships with all stakeholders including employees, shareholders, customers, suppliers, and society to fulfill its responsibility as a corporate citizen and pursue a sustainable future.

Vision

  • To Uplift Society

Mission

  • Acting with Integrity
  • Strengthening Environmental Protection
  • Caring for the Disadvantaged

Guiding Principles

Acting with Integrity: TSMC believes in acting ethically, following the law, and balancing the interests of all stakeholders. The Company endeavors to use the experience of developing a sustainable business to drive the industry and supply chain into a positive cycle and to act together with them as an uplifting force in society.

Strengthening Environmental Protection: TSMC strives to achieve environmental sustainability and continues to promote green fabs, green manufacturing, and green supply chains. The Company seeks the most efficient use of energy and resources and is committed to reducing waste and preventing pollution. TSMC is eager to share its environmental experience and expertise and aims to collaborate with government, academia, and all of society to address the challenges of climate change.

Caring for the Disadvantaged: TSMC believes in equality, justice, and a safe and prosperous society. The Company combines its resources with employee volunteer service to commit money, material and labor to the two main areas of “education” and “living”. TSMC hopes to provide underprivileged students in rural regions with diverse learning opportunities and give disadvantaged groups necessary aid and emergency relief for the common good of society.

Chairman
Morris Chang
November, 2015

 

 

The Scope of Corporate Social Responsibility

The goal of TSMC’s corporate social responsibility is to uplift society. The CSR Matrix below, set by Chairman Dr. Morris Chang, clearly defines the scope of that responsibility. The horizontal axis shows the seven areas where TSMC aims to set an example: morality, business ethics, economy, rule of law, sustainability, work/life balance and happiness, and philanthropy; and on the vertical axis are actions that TSMC has taken to fulfill its responsibilities.

TSMC CSR Matrix

Society

TSMC

Morality

Business Ethics

Economy

Rule of Law

Sustainability

Work/Life Balance
Happiness

Philanthropy

Integrity

V

V

Law Compliance

V

Anti-Corruption
Anti-Bribery
Anti-Cronyism

V

V

V

Environmental Protection
Climate Control
Energy Conservation

V

V

Corporate Governance

V

V

V

Provide Well-paying Jobs

V

V

Good Shareholder Return

V

Employees’ Work-life Balance

V

Encourage Innovation

V

V

Good Work Environment

V

Volunteers Organization

V

V

V

Education and Culture Foundation

V

CSR Management

In 2011, Chairman Dr. Morris Chang appointed the Chief Financial Officer to establish a CSR Committee to serve as the center for decision-making and action for the Company’s corporate social responsibility initiatives. CSR was added as a regular agenda item for the Board of Directors beginning in 2012, and the CFO reports annually to the Board the results of the prior year’s CSR activities and the upcoming year’s action plans.

The CSR Committee is TSMC’s interdepartmental coordination platform for carrying out CSR initiatives. Led by the CFO, the committee is comprised of members from each functional organization and holds meetings quarterly to discuss issues of interest to stakeholders, such as employees, shareholders, customers, suppliers, governments, society, and others. The committee sets objectives and plans and reviews progress to systematically and effectively fulfill the Company’s corporate social responsibilities. Through close cooperation among various internal organizations, CSR has become an integral part of TSMC’s daily operations.

Stakeholder Engagement

TSMC’s approach to stakeholder relations is divided into four stages: identification, analysis, planning and engagement. In order to pursue sustainable operations, TSMC establishes direct communications with each of its stakeholders. The Company communicates with stakeholders through multiple channels established by CSR-related units and listens to their economic, social and environmental concerns. Furthermore, clearly identified CSR Committee members take ownership of each CSR issue, whether economic, environmental or social, and are responsible for developing appropriate responses to global and social trends, the Company’s current situation, and other stakeholders concerns in order to continue promoting positive social change.

Responsibilities of TSMC CSR Committee Members

Committee Members

Responsibilities

Stakeholders

Legal

Corporate Governance, Code of Conduct, Legal Compliance, Intellectual Property, Protection of Confidential Information

Government
Employees
Society

Customer Service

Customers Service and Satisfaction, Customer Trust, Customer Confidentiality

Customers

Materials Management

Materials and Supply Chain Risk Management, Supplier Management, ConflictMinerals, EICC

Suppliers

Quality and Reliability

Product Quality and Reliability, Product Recall Mechanism

Customers

Research and Development

Innovation Management, Green Products

Employees
Customers

Risk Management

Risk Management, Crisis Management, Emergency Response and Action Plan

Customers
Employees
Government
Society
Investors

Finance

Financial Disclosure, Dividend Policy, Tax Strategy

Government
Investors

Investor Relations

Resolving Issues of Stakeholder Concern, Establishing Trusting Long-term Relationships, Effective Two-way Communication, Annual Report Production

Investors

Operations

Operational Eco-efficiency,Pollution Prevention, Water Resource Risk Management, Green Manufacturing

Customers
Investors

Environment, Health, and Safety

Environmental Policy and Management System, Climate Change Mitigation and Adaption, Pollution Prevention, Energy Consumption Efficiency,Carbon Emissions and Carbon Rights Management, Product Environmental Responsibility, Response Mechanism for Environmental Issues, Environmental Spending, Green Supply Chain, Policy and Management Systems for Occupational Health and Safety, Workplace Health and Safety, Occupational Disease Prevention and Health Promotion, Communication of ESH Regulations

Employees
Customers
Government
Society
Suppliers
Investors

Human Resources

Talent Recruitment and Retention, Employee Health and Safety, Employee Training and Development, Compensation and Benefits,Freedom of Association and Collective Bargaining, Labor Relations and Whistleblower Procedures, Labor Rights Violations and Reporting Procedures, Management of Working Hours, Child Labor

Employees

TSMC Education and Culture Foundation, TSMC
Volunteer Society

Corporate Citizenship, Philanthropy, Community Relations

Society

Public Relations

Stakeholder Engagement, Mechanism for ReflectingIssues of Social Concern, Media Relations, CSR Report Production

Society

TSMC believes that integrity is fundamental to a company’s sustainability. From a CSR perspective, TSMC also believes that customer trust is enhanced if the Company follows the law, insists on transparency, and shows good corporate governance. These practices, along with outstanding business results, mean investors will be more willing to invest in the Company over the long term and employees will be more likely to make a mutual commitment to the Company to fulfill its core values, leading to stronger coherence within the Company. At TSMC’s urging, suppliers – both upstream and downstream – have been working together to strengthen environmental protection by building a green supply chain. With the engagement of all stakeholders, the Company’s resources can be amplified to create even more value for society. In summary, carrying out TSMC’s social responsibilities gives the Company greater competitive advantage and benefits all stakeholders.

DJSI Industry Group Leader

In 2015, TSMC was recognized by the Dow Jones Sustainability Indices (DJSI) as the Semiconductors and Semiconductor Equipment Industry Group Leader for the third consecutive year, once again highlighting the company’s dedication to corporate social responsibility, leadership in adopting international sustainability management standards, and continued innovation in the economic, environmental, and social dimensions. Moreover, TSMC is one of only two semiconductor companies chosen as the World Indices components for the past 15 consecutive years.

2015 CSR Awards and Recognitions

Category

Organization

Awards and Recognitions

Overall CSR

Dow Jones Sustainability World Indices (DJSI)

  • DJSI Semiconductors and Semiconductor Equipment “Industry Group Leader“ for the 3rd consecutive year
  • RobecoSAM Sustainability Award “Gold Class“
  • RobecoSAM Sustainability Award: Industry Leader
  • Membership in the Dow Jones Sustainability World Indices for a 15th consecutive year

FORTUNE

  • Selected as one of The World’s Most Admired Companies

Barron’s

  • Selected as Top 100 World’s Most Respected Companies

MSCI Global Sustainability Index Series

  • Selected as MSCI Global Sustainability Index component

CommonWealth Magazine

  • Excellence in Corporate Social Responsibility Award – Large cap – 1st Place

Globalviews Magazine

Globalviews Magazine Corporate Social Responsibility Award:

  • Technology and Traditional Industry Group – Model Award
  • Public Welfare Promoting – Model Award

Taiwan Institute of Sustainable Energy

Taiwan Corporate Sustainability Awards:

  • Taiwan Top 50 Corporate Responsibility Report Awards – Electronics Industry – Gold Class
  • Sustainable Water Management Award

Economy, Governance

 

Institutional Investor Magazine

  • Best CEO (Technology/Semiconductors) –1st Place (buy-side) – All-Asia
  • Best CFO (Technology/Semiconductors) – 2nd Place (buy-side) – All-Asia
  • Best CFO (Technology/Semiconductors) – 1st Place (sell-side) – All-Asia
  • Best Investor Relations (Technology/Semiconductors) – 1st Place (buy-side) – All-Asia
  • Best Investor Relations – (Technology/Semiconductors) – 1st Place (sell-side) – All-Asia
  • Best Investor Relations Professional (Technology/Semiconductors) – 1st Place (buy-side) – All-Asia
  • Best Investor Relations Professional (Technology/Semiconductors) – 1st Place (sell-side) – All-Asia
  • Asia’s Best Analyst and Investor Days

IR Magazine

  • Grand prix for best overall investor relations (Large cap)
  • Best in Sector – Technology
  • Best IR by a Taiwanese company

FinanceAsia

  • Asia’s Best Companies 2015 – Taiwan
  • Best Managed Public Company – Ranked No. 2 in Taiwan
  • Most Committed to a Strong Dividend Policy – Ranked No. 2 in Taiwan
  • Best Corporate Governance – Ranked No. 3 in Taiwan
  • Best CEO – Ranked No. 1 in Taiwan
  • Best CFO – Ranked No. 2 in Taiwan

R.O.C. Ministry of Economic Affairs Industrial
Development Bureau

  • Ranked No. 1 in Survey of Top 20 Innovative Companies in Taiwan

IEEE Spectrum Magazine

  • Ranked No. 1 in “Patent Power Scorecard for Semiconductor Manufacturing” Sector

ROC Securities & Futures Institute

  • 12th Information Disclosure of Public Companies Ranking – Ranked A++

Taiwan Stock Exchange

  • Ranked in top 5% in First Corporate Governance Evaluation of Listed Companies

China Credit Information Service

  • Ranked No. 1 in Profitability for Taiwan Companies

Financial Times

  • Selected as member of FT Global 500

FORTUNE

  • Selected as member of Fortune Global 500

Environment, Safety and
Health

 

U.S. Green Building Council Leadership in Energy
and Environmental Design (LEED) Certification

  • “Gold” class certification– Fab 14 Phase 5 and Phase 6 Manufacturing Facilities

Note:

Up to the end of 2015, TSMC received 18 U.S. LEED certifications (2 “Platinum” class and 16 “Gold” class certifications)

R.O.C. Ministry of the Interior “Ecology, Energy Saving,
Waste Reduction and Health (EEWH)” Certification

  • “Diamond” class certification– Fab 15 Phase 1/2 Manufacturing Facility, Fab 15 Phase 3/4 Manufacturing Facility and Fab 15 Phase 1 Office Building

Note:

Up to the end of 2015, TSMC received 10 Taiwan EEWH “Diamond” class Green Building certifications

R.O.C. Ministry of Economic Affairs Industrial
Development Bureau “Green Factory Label”

  • Fab 15

ISO 50001 Energy Management System Certification

  • Fab 14A, Fab 14B

R.O.C. Environmental Protection Administration

  • “Annual Enterprise Environmental Protection Award” – Fab 6
  • “Energy Conservation and Carbon Reduction Action Mark” – Fab 8, Fab 12A, Fab 14B
  • “Enterprise Green Procurement Award” – Fab 2 and 5, Fab 12A
  • “National Environmental Education Award” – Fab 2 and 5, Advanced Backend Fab

R.O.C. Ministry of Economic Affairs

  • “Excellence in Carbon Reduction Award” – Fab 2 and 5, Fab 14A
  • “Water Conservation Award” –Fab 3 , Fab 12B

R.O.C. Ministry of Labor

  • “Excellence in Labor Safety and Hygiene Award” – Fab 2

Hsinchu Science Park Administration

  • “Water Conservation Award” – Fab 12B
  • “Excellence in Labor Safety and Hygiene Award” – Fab 12A

Central Taiwan Science Park Administration

  • “Excellence in Labor Safety and Hygiene Award” – Fab 15

Southern Taiwan Science Park Administration

  • “Excellence in Environmental Protection” – Fab 14B

Hsinchu County Environmental Protection Bureau

  • “Enterprise Environmental Protection Evaluation” – Fab 2 and 5, Fab 3, Fab 12A, Fab 12B
  • “Enterprise Green Procurement Award” – Fab 2 and 5

Environmental Protection Bureau of Hsinchu City

  • “Enterprise Environmental Protection Evaluation” – Fab 8, Fab 12A
  • “Enterprise Green Procurement Award” – Fab 12A

Environmental Protection Bureau of Tainan City

  • “Environmental Education Award” – Fab 6

Employees

Health Promotion Administration, Ministry of Health
and Welfare

  • “Excellence in Health Award“

Department of Health, Tainan City Government

  • “Excellence Healthy Workplace Award“