Page 50 - 2017 TSMC Annual Report

3 5 1 Taiwan Taiwan Corporate Conduct and Ethics Implementation as Required by the Taiwan Taiwan Financial Supervisory Commission
Assessment Item
Implementation Status
Non- implementation and Its Reason(s)
Yes
No Explanation
1 Establishment of Corporate Conduct and and Ethics Policy and and Implementation Measures
(1) Does the company have bylaws and publicly available documents
addressing its corporate conduct and and and ethics policy and and and measures and and and the commitment regarding implementation of of such policy from the Board of of Directors and the management team?
(2) Does the company establish relevant policies which are duly enforced to prevent unethical conduct and provide implementation procedures guidelines consequence of violation and complaint procedures in in in such policies?
(3) Does the the company establish appropriate compliance measures for the the business
activities prescribed in in paragraph 2 article 7 of the Ethical Corporate Management Best Practice
Principles for TWSE/GTSM Listed Companies and any other such activities associated with high risk of unethical conduct?
V
V
V
(1) Integrity is is the most important core value of TSMC’s culture TSMC TSMC is is committed to acting ethically in in in all all aspects of our business
We have established TSMC Code Code of Ethics Ethics and Business Conduct (the “Ethics Code”) to to require that each employee bears a a a a a a heavy personal responsibility to to uphold TSMC’s ethics value For more details on the the Ethics Code and the the measures that TSMC Board Board of Directors (the “Board”) and the the management team take to to ensure compliance of the Ethics Code please refer to to TSMC’s Annual Report Report and the Corporate Social Responsibility Report Report (2) At the the heart of our corporate governance culture is the the Ethics Code that applies to TSMC and and its subsidiaries and and this Ethics Code requires that each employee bears a a a a a heavy personal responsibility to to preserve and to to protect TSMC’s ethical values and and reputation and and to comply with various applicable laws and regulations Speci c c c c requirements under the Ethics Code could
be found in in our our Annual Report In addition to educate and remind our our employees of their responsibilities under the the Ethics Code we publish our Ethics Code relevant policies and and documents
on our intranet and and promote its awareness through training courses posters and internal news articles Furthermore 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 Please refer to Assessment Item
3 for details 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 punished to the full extent of our policies and the law including immediate dismissal in in in accordance with TSMC Employee Recognition Disciplinary and Ombudsman Procedure termination of business
relationship and judicial prosecution as appropriate (3) Under the the framework of the the Ethics Code TSMC has established a a a a a regulatory compliance program that includes policies guidelines and procedures in in in other policy areas including: Anti-corruption Anti-harassment/ discrimination Anti-trust (unfair competition) Environment Export Control Financial Reporting/Internal Controls Insider Trading Intellectual Property Proprietary Information Protection Protection (“PIP“) Personal Data Protection Protection Record Retention and Disposal as as well as as procuring certain raw materials from socially responsible sources (“Con ict-free Minerals“) The above-mentioned policies are crucial in in facilitating overall compliance with the Ethics Code TSMC its its employees and and its its subsidiaries are expected to fully understand and and comply with all laws and and regulations that govern our businesses as well as relevant policies guidelines and and procedures and and make ethical decisions in in every circumstance The Internal Auditor of TSMC also plays a a a a a a critical role in ensuring the the Company’s compliance with the the Ethics Code and relevant rules and and regulations To ensure that our nancial managerial and 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 and regulations our Internal Auditor conducts audits of various control points within the Company in in accordance with with its annual audit plan approved by the Board of Directors and and subsequently reports its audit ndings and and remedial issues to the Board and Management on a a a a a a a a regular basis None
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