Page 54 - TSMC 2020 Annual Report

financial managerial and and and operating information is accurate reliable and and and timely and and and that our employees’ actions are in in in in compliance with applicable policies standards procedures laws and and regulations our Internal Auditor conducts audits of various control points within the the Company in in accordance with with its its annual audit audit plan approved by the the Board of Directors and subsequently reports its its audit audit findings and and remedial issues to the Board and and management on a a 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 our our Ethics Code and and and and related policies and and and and documents on our our our intranet and and and and provide training courses posters and and and and emails In terms of training courses TSMC not only provides annual online course course on on on the the Ethics Code and requires all employees to complete the the training training as as well as as face-to-face training training courses delving into more specific ethics-related topics for targeted employees In 2020 there were about 50 482 attendances that completed ethics-related training courses at at at at TSMC TSMC and its subsidiaries TSMC TSMC not only provides annual online courses on on on professional ethics and requires colleagues to complete the training 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 2020 we held both a a a a a a a a a a sustainable supply chain experience 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 518 attendees from 337 suppliers participated in in these activities We also exchange views on on appropriate business conduct and and and TSMC’s ethical standards and and and implementation status 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 directly to the the the Audit Committee TSMC maintains additional internal reporting channels for our our our employees employees To foster an an an an open culture of ethics compliance we we encourage our our our employees employees and the third parties we we do business with with to report any suspected noncompliance with with law or 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 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 to time time Below is a a a summary of of the Number of of Reported Incidents Year
FY2016
FY2017
FY2018
FY2019
FY2020
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 14 26 1 2 3 4 3 4 246 (Note 1) 22 6
(Note 2) 4 2 (Note 3) 052
Note Note 1: Among them 155 cases
cases
cases
were were were related related to to employee employee relations 69 cases
cases
cases
were were were categorized as as as as as as others (e g g g g g g g asking personal questions or or or or private matters) and and 22 cases
cases
cases
were were were related related to to ethics Note Note 2: One One incident incident involved involved an an an an an employee employee employee employee who who committed multiple serious violations of of of the the the the Ethics Code by by borrowing money from vendors and and defrauding peers in in in in in in in in in in the the the the name of of of purchasing discounted vouchers The The employee employee employee employee was was dismissed dismissed One One incident incident incident involved involved an an an an an an employee employee employee employee who who grossly violated Company Company regulations by by over-claiming 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 a a large amount of of of of materials for unnecessary replacement
in in in in in in in in in in in in in in in in order to to to to to obtain The The employee employee employee employee was was dismissed dismissed For each the the the the the the remaining four incidents the the the the the the Company Company Company took progressive disciplinary actions taking into account the the the the the the nature and severity of of the the the the the the misconduct: one one incident incident incident involved involved an an an an an an an employee employee employee who who violated Company Company policy by improperly leaking 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 a a a a a a project’s base price to to to to to to 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 a a a a a a certain vendor Although the the the the the the act act did not bring harm to to to to to to the the the the the the company company impartiality and professionalism were compromised as as 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 a a a result one one one one incident incident incident incident involved involved involved involved an an an an an an an an an employee employee employee employee who who who who failed to to to disclose 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 a a a situation in in in in in in in in in in in in in in in which he/she had interest that conflicts with the the the the the company company in in in in in in in in in in in violation of of the the the Ethics Ethics Code Code one one one incident incident incident involved involved involved an an an an an an an an employee employee employee who who who violated violated the the the Ethics Ethics Code Code by by mismanaging vendor/supplier relationships one one one incident incident incident involved involved involved an an an an an an an an employee employee employee who who who violated violated violated Company Company procurement process by by making a a a a a a a a a a a a a a a payment request with mismatched justification Note 3: These two two two employees employees who violated violated Company Company Company sexual sexual prevention prevention policy were were disciplined by by the the the the the company and one was dismissed Meanwhile Company Company Company leveraged the the the the the two two two violations to to to strengthen the the the the the promotion of of how to to to use use social social media media properly in in in in in in 2020 TMSC annual sexual sexual harassment prevention prevention so so so as as as to to to raise employees’ awareness since these two two two incidents were were involved in in in in in in misuse of of social media