Page 52 - 2017 TSMC Annual Report

Assessment Item
Implementation Status
Non- implementation and Its Reason(s)
Yes
No Explanation
4 Information Disclosure
Does the company disclose its guidelines on business ethics as as well as as information about implementation of such guidelines on on on its website and Market Observation Post System (“MOPS”)?
V
Our internal website provides guidelines and informative articles on ethics and and honorable business conduct (in both Chinese and and English) for employees’ easy access In addition TSMC discloses relevant policies and information in in its Annual Report Report (which is also available available at the MOPS) and CSR Report Report (available at: http://www tsmc com)
None
5 If the the the company has established corporate governance policies policies based on on on TSE Corporate Conduct and and Ethics Best Practice Principles please describe any any discrepancy between the the the policies policies and and their implementation TSMC has established the the the the the Ethics Ethics Ethics Code Code to require that all employees of cers and and and board members comply with the the the the the Ethics Ethics Ethics Code Code and and and the the the the the other policies and and and procedures There is is is no discrepancy between the the the the the Ethics Ethics Ethics Code Code including its its af liate policies and and and procedures and and and its its implementation For more details please refer to “3 5 5 Code Code of of Ethics and and and Business Conduct” on on on page 46-50 of of this Annual Report 6 Other important information to facilitate better understanding of the the the company’s company’s corporate corporate conduct conduct and and and ethics ethics compliance practices (e g g review the the the company’s company’s corporate corporate conduct conduct and and and ethics ethics policy) For details on on on on on the implementation of of of TSMC’s Corporate Conduct Conduct and and Ethics Ethics please refer to “3 5 5 Code of of of Ethics Ethics and and Business Conduct” on on on on on page 46-50 of of of this Annual Report 050
3 6 Regulatory Compliance
TSMC’s robust compliance compliance efforts are comprised of of legislation monitoring developing and implementation of of effective compliance compliance policies and and programs training and and maintaining an an an open reporting environment Legislative Monitoring
TSMC operates in in many countries To comply with governing legislation applicable laws regulations and regulatory expectations we closely monitor domestic and and foreign government policies and and regulatory developments that could materially impact TSMC’s business and financial operations Our Legal organization periodically updates our relevant internal departments management
and the Audit Committee of applicable regulatory regulatory changes so that internal teams ensure compliance with new regulatory regulatory requirements in a a a a a a a a a a a a a timely manner We are also a a a a a a a a a a a a a proactive advocate for for legislative and and and regulatory reform and and and our comments and and and recommendations on on on legal reforms to to the government have been accepted constructively TSMC is increasingly dedicated to to identifying potential regulatory issues and and will continue to to be involved in in in in in advocating public policy changes that foster a a a a a a a a a positive and and fair business environment Policy and and Compliance
Program Development and and Implementation Under the the framework of the the Ethics Code TSMC has established a a a a a a a a regulatory compliance program that includes policies guidelines and procedures in in in in different compliance areas including: Anti-corruption Anti-harassment/discrimination Employment Regulations Anti-trust (unfair competition) Environment Export Control 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 (“Conflict-free Minerals”) It is our our belief that these policies are crucial in in in strengthening overall compliance compliance with the the Ethics Code and and compliance compliance program TSMC its its employees and and its its subsidiaries are expected to fully understand and and and comply with all laws and and and regulations that govern our businesses as as well as as relevant policies guidelines and and procedures and and make ethical decisions in in every circumstance Compliance
Awareness Training
Training
is a a a a a a a major component of our regulatory compliance program conducted throughout the year to to refresh TSMC’s employees’ commitment to to to ethical conduct and and to to to get updated information on on on on on laws and and regulations related to to to their daily operations Highlights of our training include:
● Awareness promotion emails to employees posters at our facilities and and news articles compliance guidelines tips and and FAQs which our our employees can access through our our intranet ● Live seminars focusing on on specific topics such as Anti-Corruption (this is is also the highlight of our compliance training activities for 2017) PIP Intellectual Property Personal Data Protection Conflict Minerals Compliance
and Export Control Management Training
is made mandatory for those employees whose jobs are are especially relevant to to to to a a a a a a a a a a a particular topic to to to to ensure sufficient awareness of relevant laws and internal policies