Page 49 - 2017 TSMC Annual Report

Internal Internal Auditing: The Internal Internal Auditor of TSMC plays a a a a a critical role in in ensuring the the Company’s compliance with the the Ethics Code and and relevant rules and and regulations To ensure that our financial managerial and operating information is accurate reliable and and timely and and that our employee’s actions are in compliance with applicable policies standards procedures laws and regulations our Internal Auditor conducts audits of various control points within the Company in in in accordance with with its annual audit plan approved by the Board of Directors and subsequently reports its audit findings and remedial issues to the Board and management on a a a a a a a regular basis Training and Promotion: To promote awareness to our employees of their responsibilities under the the Ethics Code we publish our Ethics Code and and related policies and and documents on our our intranet and and provide training courses posters and and internal news articles In addition we provide an introductory training course on the Ethics Code which is available to all employees online as as well as as advanced courses delving into more specific compliance topics such as anti-corruption PIP export control insider trading and anti-harassment In addition to our internal compliance efforts we expect and assist our business partners such as as customers and suppliers and any other entities with whom we deal (such as consultants or or or third party agents who act for or or or on behalf of TSMC) to recognize and and and understand TSMC’s ethical standards to fulfill our responsibilities as a a a a corporate citizen For instance we require all of our suppliers to declare in in writing that they will not engage in any any fraud or any any unethical conduct when dealing with us our officers or employees In addition TSMC is a a full member of the Responsible Business Alliance (“RBA” formerly the Electronic Industry Citizenship Coalition (“EICC”)) dedicated to electronics supply chain sustainability In addition to adopting the RBA Code of of Conduct
at all of of its facilities TSMC applied the RBA’s standards to enhance our audit program of our suppliers and relevant business partners We provide training and communicate our ethical culture to our suppliers through live seminars to prevent any unethical conduct and detect any sign of Ethics Code violations We exchange views on on appropriate business conduct and TSMC’s ethical standards with our customers as part of customer customer audit programs Reporting Channels and Whistleblower Protection
To ensure that our conduct meets relevant legal requirements and and the the highest ethical standards under the the Ethics Code TSMC provides multiple channels for reporting business conduct concerns First of all our Audit Committee approved and we have implemented the “Complaint Policy and Procedures for Certain Accounting and and Legal Matters” and and “Procedures for Ombudsman System” that allow employees or or any whistleblowers with relevant evidence to report any financial legal or ethical irregularities anonymously through either
the the Ombudsman or directly to the the Audit Committee TSMC maintains additional internal reporting channels for our employees To foster an an open culture of ethics compliance we encourage our our employees and the third parties we do business with to report any any suspected wrongdoing by by TSMC or or by by any any parties with whom we do business TSMC treats any complaint and the the investigation thereof in in in a a a a a a confidential and and sensitive manner and and strictly prohibits any form of retaliation against any individual who in in in good faith reports or or helps with the investigation of any complaint Due to the open reporting channels TSMC received reports on various issues from employees and external parties such as our customers and suppliers from time time to to time time Below is a a a summary of of the Number of of Reported Incidents We did not receive any report related to finance or or accounting matters in in in 2017 047
Incidents reported to the Ombudsman System 79 (Note 1)
Incidents reported to the Audit Committee 2 Whistleblower System Incidents reported to the “Irregular Business Conduct
Reporting”
32 (Note 2)
Total incidents investigated as founded Sexual Harassment Investigation Committee 7 7 Total incidents investigated as founded FY 2015
60 - 16 - FY 2016
80 1 35 2 FY 2017 4 (Note 3) 3 (Note 4)
7 7 5 5 Note Note 1: Among Among the the 79 cases cases cases no incidents related related to to ethics ethics matters matters Note Note Note 2: Among Among the the the 32 cases cases cases cases 18 cases cases cases cases related related to to ethics ethics matters matters Note Note 3: After investigation of of the the the the the 4 cases cases cases 9 9 employees employees con rmed their violation of of the the the the the Ethics Code All 9 9 employees employees were were severely disciplined by by the the the the the Company and 3 3 were were dismissed Note 4: After the the the the investigation by by TSMC’s Sexual Harassment Investigation Committee 3 3 3 employees involved in in in in these 3 3 cases received severe discipline from the the the Company Ethics Code Violation Disciplinary Action
We do not tolerate any violation of the Ethics Code and treat every possible violation incident seriously Any violator of the Ethics Code (or relevant regulations) will be severely disciplined to to the the full extent of our policies and the the law up to to and including immediate dismissal termination of business relationship and judicial prosecution as appropriate