Page 52 - TSMC 2018 Annual Report

Assessment Item
Implementation Status
Non- implementation and Its Reason(s)
Yes
No Summary
5 If the the company has established corporate governance policies based on Ethical Corporate Management Best Practice Principles for TWSE/GTSM Listed Companies please describe any any discrepancy between the the policies and their implementation TSMC has established the the the the the Ethics Ethics Ethics Code Code to require that all employees officers 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 affiliate 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 3 6 Regulatory Compliance
TSMC’s compliance compliance systems are comprised of of of a a a a a a a series of of of legislation monitoring developing and implementation of of of effective compliance compliance policies and and programs training and and maintaining open reporting channels 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 and financial operations Our Legal organization periodically updates our relevant internal departments management and and the Audit Committee of applicable regulatory regulatory changes so that internal teams ensure compliance with new regulatory regulatory requirements in in 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 a proactive advocate for for legislative and and and regulatory reform and and and our comments and and and recommendations on on legal reforms to to to the government have been accepted constructively TSMC is is increasingly dedicated to to to identifying potential regulatory issues and and will continue to be involved in in in in in advocating public policy changes that foster 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 Antitrust (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 Ethics Code and and and compliance compliance program TSMC its its employees and and and its its subsidiaries are expected to fully understand and and and and comply with all laws and and and and regulations that govern our businesses as as well as as relevant policies guidelines
and and and and procedures and and and and make ethical decisions 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 employees posters at our our our 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 on on on specific topics such as Anti-Corruption PIP Intellectual Property Personal Data Protection Export Control Management and and Antitrust Training
is made mandatory for those employees whose jobs are especially relevant to to to a a a a a a a a a a a a a particular topic to ensure sufficient awareness of relevant laws and internal policies • On-line learning programs updated frequently to to to to to provide most up-to-date information and and and and and timely and and and and and flexible access for for employees to to to to to understand the law and and key compliance issues covering topics of Anti-Corruption Antitrust Anti-harassment Insider Trading Export Control Management PIP and Personal Data Protection among others • E E x x x t t t t t t t t t t t t t t t t t t t t t t t e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e r r r r r r r r r r r r r r r r r r r n n n n n n n n n n n n n n n n n n n n n n n n n n n a a a a a a a a a a a a a a a a a a a a a a a a a a a a l l l l l l l l l l l l l l l t t t t t t t t t t t t t t t t t t t t t t t r r r r r r r r r r r r r r r r r r r a a a a a a a a a a a a a a a a a a a a a a a a a a a a i i i i i i i i i i i i i i i i i i n n n n n n n n n n n n n n n n n n n n n n n n n n n i i i i i i i i i i i i i i i i i i n n n n n n n n n n n n n n n n n n n n n n n n n n n g g g g g g g g i i i i i i i i i i i i i i i i i i n n n n n n n n n n n n n n n n n n n n n n n n n n n T T a a a a a a a a a a a a a a a a a a a a a a a a a a a a i i i i i i i i i i i i i i i i i i w w w w w a a a a a a a a a a a a a a a a a a a a a a a a a a a a n n n n n n n n n n n n n n n n n n n n n n n n n n n a a a a a a a a a a a a a a a a a a a a a a a a a a a a n n n n n n n n n n n n n n n n n n n n n n n n n n n d d d d d d d d a a a a a a a a a a a a a a a a a a a a a a a a a a a a b b r r r r r r r r r r r r r r r r r r r o o o o o o o o o o o o o o o o o o o o o a a a a a a a a a a a a a a a a a a a a a a a a a a a a d d d d d d d d f f f o o o o o o o o o o o o o o o o o o o o o r r r r r r r r r r r r r r r r r r r T T S M M C C ’ s s s s s s s s s s s s L e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e g g g g g g g g a a a a a a a a a a a a a a a a a a a a a a a a a a a a l l l l l l l l l l l l l l l t t t t t t t t t t t t t t t t t t t t t t t e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e a a a a a a a a a a a a a a a a a a a a a a a a a a a a m m m m m m t t t t t t t t t t t t t t t t t t t t t t t o o o o o o o o o o o o o o o o o o o o o r r r r r r r r r r r r r r r r r r r e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e c c c c c c c e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e i i i i i i i i i i i i i i i i i i v v v v e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e c c c c c c c u u u u u u r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e n n n n n n n n n n n n n n n n n n n n n n n n n n n t t t t t t t t t t t t t t t t t t t t t t t d d d d d d d d e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e v v v v e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e l l l l l l l l l l l l l l l o o o o o o o o o o o o o o o o o o o o o p p p p p m m m m m m e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e n n n n n n n n n n n n n n n n n n n n n n n n n n n t t t t t t t t t t t t t t t t t t t t t t t s s s s s s s s s s s s o o o o o o o o o o o o o o o o o o o o o f f f n n n n n n n n n n n n n n n n n n n n n n n n n n n e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e w w w w w l l l l l l l l l l l l l l l a a a a a a a a a a a a a a a a a a a a a a a a a a a a w w w w w s s s s s s s s s s s s a a a a a a a a a a a a a a a a a a a a a a a a a a a a n n n n n n n n n n n n n n n n n n n n n n n n n n n d d d d d d d d r r r r r r r r r r r r r r r r r r r e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e g g g g g g g g u u u u u u l l l l l l l l l l l l l l l a a a a a a a a a a a a a a a a a a a a a a a a a a a a t t t t t t t t t t t t t t t t t t t t t t t i i i i i i i i i i i i i i i i i i o o o o o o o o o o o o o o o o o o o o o n n n n n n n n n n n n n n n n n n n n n n n n n n n s s s s s s s s s s s s a a a a a a a a a a a a a a a a a a a a a a a a a a a a n n n n n n n n n n n n n n n n n n n n n n n n n n n d d d d d d d d for its lawyers to to comply with applicable continuing legal education requirements External experts are also invited to to give in-house lectures on key issues 50