Page 60 - TSMC 2022 Annual Report

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 global 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 our audit program of our our our our suppliers and and relevant business partners We provide training and and communicate our our our our ethical culture to our our our our suppliers through live seminars and and online programs to prevent any any unethical conduct and and detect any any sign of Ethics Code violations In 2022 we held a a a a a a a a a sustainable supply chain ESH forum to to share/exchange practical experiences on topics such as the Ethics Code environmental protection and and occupational safety We also exchange views on on on on on appropriate business conduct and and TSMC’s ethical standards and and implementation status with our customers as part of customer customer audit programs Reporting Channels and Whistleblower Protection
TSMC has established and and and published its “Complaint Policy and and and Procedure for Certain Accounting & Legal Matters” and and and pledges
to comply with the the relevant regulations in in in the the policy Open and and multiple reporting channels are available for internal and and external voices to protect the the rights and and interests of stakeholders and and the the Company All reported incidents collected from reporting channels inside or or or outside of of TSMC TSMC are properly recorded and traced TSMC TSMC also prohibits any form of of retaliation by providing proper proper protection for any individual who in in in in good faith reports a a a a a a a a a suspected violation or or or participates in in in in an an investigation In 2022 the Ethics Committee held a a a a a total six meetings to to examine major reported incidents under investigation TSMC investigates each individual case case according to its characteristics through specific divisions and treats every received case case seriously carefully and effectively to ensure the the accuracy of the the investigation The TSMC Ethics Committee will evaluate each case to determine whether whether it it is is is an exceptional case or whether whether it it results from systemic issues of insufficient awareness in in in ethics This allows TSMC to to continue evaluating whether it it is necessary to to improve its management and internal control procedures Awareness such as emails to to employees employees describing the violations and disciplinary actions in in in each quarter are conducted to to promote employees’ awareness and avoid recurrence of similar incidents In 2022 TSMC did did not receive receive any any reports related to finance accounting or or or antitrust matters nor did did we receive receive any any complaints concerning breach of of customer customer privacy and loss of of customer customer data or or any material regulatory violations (where a a a a a a a a a a a fine exceeds NT$1 million) including non-monetary sanctions In 2022 the the incidents reported through the the Audit Committee Whistleblower System System Ombudsman System System and Irregular Business Conduct Reporting System totaled 335 Among them 217 cases cases were related to to people management/employee relations 107 cases cases were were categorized as as as others (e g g g asking personal questions or or private matters) and 11 cases were were related to ethics Four incidents were verified upon investigation and determined for disciplinary action by the the Ethics Committee In 2022 TSMC leveraged the the four violations to strengthen ethics promotion for all employees in in supplier-related activities Below is a a a a a a summary of reported incidents Year
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 3 3 4 4 4 2 14 11 335 11 4 (Note 1) 19 14 (Note 2) FY2019
FY2020
FY2021
150 14 1 205 26 2 246 22 6 327 17 4 058
FY2018
Note 1: Of the the the four verified cases: One One incident incident involved involved employees employees who who failed to to notice the the the price listed on on on on on on on order was different from the the the Company’s quotation and and one one employee employee employee employee received received major demerit and and one one employee employee employee employee employee employee received received received warning One One One One incident incident incident involved involved involved employees employees who who who approached vendors for for business without authorization in in in in in in in in in in in in in in in in in pursuit of of personal interest The Company Company took progressive disciplinary actions actions according to to to the nature and and and severity of of each misconduct including dismissal for for for one employee employee employee employee employee One One One incident incident incident involved involved involved an an an an an an employee employee employee employee employee who who who engaged in in in in in in in in in in in in in in in in in in inappropriate interactions and and and received received received 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 probation One One One incident incident involved involved an an an an an employee employee who who asked vendor to to provide services for for personal benefit and and received warning Note 2: Employees who who violated Company Company Company sexual sexual prevention policy (the “Policy”) were disciplined by by the the the the the the the the the Company Company Company based on on on on on the the the the the the the the the case-by-case nature and and and and severity of of the the the the the the the the the verified misbehaviors Since these violations violations involved various inappropriate behaviors behaviors behaviors the the the the the the the the the Company Company Company leveraged the the the the the the the the the violations violations and and and summarized the the the the the the the the the Policy Policy to to educate employees employees what kinds of of behaviors behaviors behaviors could be be be be viewed as as as as as as as sexual sexual sexual harassment harassment and and and the the the the the the the the the consequences in in in in in 2022 TMSC annual
sexual harassment prevention training so as as to to raise employees’ awareness FY2022