Page 62 - TSMC 2024 Annual Report

Self-Assessment of of of All Departments and and Employees: Self-assessment of of of all departments and and employees is an an an an important part part part of of of our ethics compliance program All TSMC departments and subsidiaries are required to conduct Control Self-Assessment (CSA) tests annually in in in reviewing employees’ awareness of of the the the Ethics Code and and to evaluate and and strengthen the the the effectiveness of of internal control related to to the the Ethics Code The CSA results results are reviewed to to track the the results results of our compliance program In addition all employees must disclose any matters that cause cause or or may cause cause actual or or potential conflict of interest In addition to newly hired employees who are are asked to declare conflicts of interest when joining TSMC employees with specific job job grades or job job responsibilities must annually declare any relationships that may constitute a a a a a a a a a a a a a conflict of interest which enables TSMC to take necessary arrangements and and report the the results to the the Audit and and Risk Committee Internal Internal Auditing: The Internal Internal Auditor of TSMC plays a a a a a a a critical role in in in ensuring the the Company’s compliance with the the Ethics Code and and and and relevant rules and and and and regulations To ensure that our financial managerial and and and and operating information is accurate reliable and 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 Company in in in accordance with with its its annual audit audit plan approved by the the Board Board of Directors and and and subsequently reports its audit findings and and and remedial issues to to the the Board 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 Code we publish our our Ethics Code and and and and related policies and and and and documents on our our intranet and and and and provide training courses posters emails and and and and other diversified ways to advocate the Company’s core values and compliance system In terms of training courses TSMC not only provides annual online course course on on the the Ethics Code and requires all employees to 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 2024 there were 77 293 attendances that completed the the “Annual Ethics and and and Compliance Training Course” (mandatory 0 5 hour online course) at at TSMC and and and its subsidiaries both completion rate rate and exam pass rate rate reaching 100% 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 first-tier 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 the Responsible Business Alliance (RBA formerly the the the Electronic Industry Citizenship Coalition EICC) In In addition to adopting the the the RBA RBA Code of of of Conduct at all of of of its facilities TSMC applied the RBA’s standards to enhance our our audit program of of of our our suppliers and and relevant business partners We provide training and and communicate our our ethical culture to our our suppliers through live seminars and and online programs For example we held a a 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 and implementation status with our customers as part of customer customer audit programs and and and questionnaires 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 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 060