2015 TSMC Annual Report

• TSMC Vision, Mission & Core Values
• Letter to Shareholders
• Company Profile
  1. An Introduction to TSMC
  2. Market/Business Summary
  3. Organization
  4. Board Members
  5. Management Team
• Corporate Governance
  1. Overview
  2. Board of Directors
  3. Major Resolutions of Shareholders’ Meeting and Board Meetings
  4. Taiwan Corporate Governance Implementation as Required by the Taiwan Financial Supervisory Commission
  5. Code of Ethics and Business Conduct
  6. Regulatory Compliance
  7. Internal Control System Execution Status
  8. Status of Personnel Responsible for the Company’s Financial and Business Operation
  9. Information Regarding TSMC’s Independent Auditor
  10. Material Information Management Procedure
• Capital and Shares
  1. Capital and Shares
  2. Issuance of Corporate Bonds
  3. Preferred Shares
  4. Issuance of American Depositary Shares
  5. Status of Employee Stock Option Plan
  6. Status of Employee Restricted Stock
  7. Status of New Share Issuance in Connection with Mergers and Acquisitions
  8. Financing Plans and Implementation
• Operational Highlights
  1. Business Activities
  2. Technology Leadership
  3. Manufacturing Excellence
  4. Customer Trust
  5. Employees
  6. Material Contracts
• Financial Highlights and Analysis
  1. Financial Highlights
  2. Financial Status and Operating Results
  3. Risk Management
• Corporate Social Responsibility
  1. Overview
  2. Environmental, Safety and Health (ESH) Management
  3. TSMC Education and Culture Foundation
  4. TSMC Volunteer Program
  5. TSMC i-Charity
  6. Social Responsibility Implementation Status as Required by the Taiwan Financial Supervisory Commission
• Subsidiary Information and Other Special Notes
  1. Subsidiaries
  2. Status of TSMC Common Shares and ADRs Acquired, Disposed of, and Held by Subsidiaries
  3. Special Notes
• Financial Statements
  1. Consolidated Financial Statements for the Years Ended December 31, 2014 and 2013 and Independent Auditors’ Report
  2. Parent Company Only Financial Statements for the Years Ended December 31, 2014 and 2013 and Independent Auditors’ Report
• Contact Information
• Downloads
• Previous Annual Reports
• CHINESE

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.

 

 

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

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

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