Page 50 - TSMC 2019 Annual Report

Internal Internal Auditing: The Internal Internal Auditor of TSMC plays a a a a a a a a critical role in in in ensuring the the Company’s compliance with the the Ethics Code and relevant rules and and and regulations To ensure that our financial managerial and and and operating information is accurate reliable and and and timely and and and that our our employees’ actions are in compliance with applicable policies standards procedures laws and and and regulations our our Internal Auditor conducts audits of various control points within the the Company in in in accordance with with its its annual audit audit plan approved by the the Board of Directors and and and subsequently reports its audit findings and and and remedial issues to to the Board and and and management on a a a a a a a a a a a regular basis Training and Promotion: To promote awareness to our our employees of their responsibilities under the the Ethics Ethics Code we publish our our Ethics Ethics Code and and and and related policies and and and and documents on on our our intranet and and and and provide provide training courses posters and and and and emails In addition we provide provide an introductory training training course course on on the Ethics Code which is available to to to all employees online as as well as as face-to-face training training courses delving into more specific ethics-related topics for targeted employees In 2019 there were about 47 500 attendances that completed ethics-related training courses at at TSMC and its subsidiaries In addition to to our our internal compliance efforts we expect and and and assist our our business partners such as as customers and and and suppliers and and and any other entities with whom we deal (include consultants or or or third party agents who who act for or or or on on behalf of TSMC) to recognize and understand TSMC’s ethical standards to fulfill our our responsibilities as a a a a a a a a a corporate citizen For instance we require all of our our suppliers to declare in in writing that they will respect and and and comply with TSMC’s ethical standards and and and culture TSMC TSMC is a a a a a a a a full member of the the Responsible Business Alliance (“RBA” formerly the (Electronic Industry Citizenship Coalition EICC)) dedicated to electronics supply chain sustainability In addition to to adopting the the RBA RBA Code of of Conduct at all of of its facilities TSMC applied the the RBA’s standards to to enhance our our our audit program of our our our suppliers and and relevant business partners We provide training and and communicate our our our ethical culture to to our suppliers through live seminars to to prevent any any unethical conduct and detect any any sign of Ethics Code violations In 2019 we held both a a a a a a a a a a a sustainable supply chain experience exchange exchange and our annual Responsible Supply Chain Forum to share/exchange practical experiences on on on on topics such as the Ethics Code labor rights environmental protection and occupational safety In total 709 attendees from 481 suppliers participated in in these activities We also 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 and and Procedures Procedures for for Certain Accounting and and and Legal Matters” and and and “Procedures for for Ombudsman System” that allow employees or or or any any whistleblowers with relevant evidence to report any any financial legal or or or ethical irregularities anonymously through either the the the Ombudsman or or or directly to the the the Audit Committee TSMC maintains additional internal reporting channels for our employees To foster an an an an open culture of ethics compliance we we encourage our our employees and the third parties we we do business with to report any suspected noncompliance with law or relevant TSMC policy TSMC treats any any complaint and and and the the investigation thereof in in in a a a a a a a a a a a confidential and and and sensitive manner and and and strictly prohibits any any form of of retaliation against any any individual who in in in in in good faith reports or or helps with the investigation of any any complaint Due to to the open reporting channels TSMC receives reports on various issues from employees and external parties such as our customers and suppliers from time time to time time Below is a a a summary of of the Number of of Reported Incidents Year
FY 2016
FY 2017
FY 2018
FY2019
Total reported cases
Ethics-related cases
Cases investigated and verified as as ethics violations Sexual Harassment Investigation Committees Formed
Cases investigated and verified as as violations 116 113 16
20 2 4 5 7 5 3 150 205 (Note 1) 14 26
1 2 2 (Note 2) 3 4 3 3 4 (Note 3) 48 Note 1: Among the the 205 cases
cases
cases
132 were related related related to to to employee employee relationship 47 cases
cases
cases
related related related to to to other matters matters matters (e g g employee’s individual interest or private matters) and 26
cases
cases
cases
related related related to to to ethical matters matters matters Note 2: One case involved an an an an employee employee who requested a a a a a a a a a a a a a supplier to reserve a a a a a a a a a a a a a hotel and and pay advance accommodation fees during his business trip actions which violate TSMC policy and and the employee employee was disciplined Another case involved an an an employee employee who abused his work relationship by requesting a a a a a a a a a a a a a supplier to to make a a a a a a a a a a a a a personal loan to to the the employee employee a a a a a a a a a a a a a severe violation of our Ethics Code and the employee was terminated Note 3: After the the investigation by TSMC’s Sexual Harassment Investigation Committee four employees involved in in in in confirmed cases
of sexual harassment received severe discipline from the the Company