Page 63 - TSMC 2024 Annual Report

In 2024 TSMC did not receive any reports related to insider trading money laundering or or or other finance accounting or or or antitrust matters nor did we receive any any complaints concerning breach of of customer customer privacy and loss of of customer customer data or or any any material regulatory violations (where a a a a a fine exceeds NT$1 million) including non-monetary sanctions In 2024 the the incidents reported through the the Audit and and Risk Committee Whistleblower System System Ombudsman System System and and Irregular Business Conduct Reporting System totaled 358 Among them 236 cases were related to to people management/employee relations 106 cases cases were were categorized as as as as others (e g g g asking personal questions or or private matters) and 16 cases cases were were related to ethics One incident was verified upon investigation and determined for disciplinary action by the Ethics Committee In 2024 TSMC leveraged the the the one violation to strengthen ethics promotion for employees and suppliers in supplier-related activities Below are the the the summary of reported incidents and reporting area Case
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 4 4 14 19 2 11 14 358 16 1 1 (Note 1)
35 50 23 28 (Note 2)
FY2021
FY2022
FY2023
246 22
6 327 17 4 335 11 4 348 13 5 Note 1: This verified case involved employees employees who failed to to to to follow the the the the standard procedures for receiving materials and and and and replacing parts resulting in in in in in in in in in in in discrepancies between inventory records and and and and actual stock Depending on on on on on on on on on on the the the the the the the the the severity severity of of of their involvement the the the the the the the the the employees employees were were subject to to to to disciplinary actions including dismissal retention with 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 a a a probationary review removal from managerial positions and and and and and cancellation of of of bonuses Note 2: Employees who violated Company Company Company sexual sexual prevention policy (the “Policy”) were were disciplined by by the the the the the the the the the the the the Company Company Company based on on on on on on on on on on on the the the the the the the the the the the the case-by-case nature and and and and severity severity of of of of the the the 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 the Company Company Company leveraged the the the the the the the the the the violations violations and and and and summarized the 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 as as as as sexual sexual sexual harassment harassment harassment and and and and the the the the the the the the the the consequences consequences as as as as as as as as well as as as as as as as as emphasize the the the the type and and possible consequences consequences for power harassment harassment harassment in in in in in in 2024 TSMC annual sexual sexual harassment harassment harassment prevention training so as as as as as as as as to to raise employees’ awareness Cases Investigated and Verified as as Violations in in Different Reporting Area
FY2020
FY2021
FY2022
FY2023
(Note)
FY2024
Corruption or or Fraud
Discrimination or Harassment Customer Privacy Data
Conflicts of Interest
Money Laundering or Insider Trading
6 2 0 - - 4 4 4 4 11 14 0 0 0 0 - - - - - - - - 0 0 0 0 - - - - 2 1 23 28 0 0 0 0 1 0 0 0 0 0 0 0 0 0 2 0 061
Antitrust 0 Others - Note: The reporting area classification is starting from 2023
Ethics Code Violation Disciplinary Action
FY2020
TSMC has zero tolerance for violation violation of of the Ethics Code of of any kind and treat every possible violation violation case seriously For example any employee who violates the Ethics Code (or relevant regulations) is is subject to disciplinary actions in in accordance with TSMC procedures up to and and including including termination of employment and and will negatively affect their annual performance reviews (including bonus adjustment) Similarly severe consequences including business termination and legal actions when appropriate will be taken against any violating supplier FY2024