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As the world's largest dedicated semiconductor foundry, TSMC is committed to ensuring that working conditions in its supply chain are safe, that workers are treated with respect and dignity, and that business operations are environmentally responsible and conducted ethically. In reflection of this commitment, TSMC in December 2014 became a member of the Electronic Industry Citizenship Coalition (EICC), the largest coalition of electronics companies committed to supporting the rights and wellbeing of workers and communities affected by the global electronics supply chain.

The significance of being a member is that all aspects of TSMC's business are now aligned with the EICC Code of Conduct. TSMC went through a meticulous due diligence process to make sure that its own code of conduct is consistent with and no less stringent than the EICC Code. A number of internal policies and procedures applicable to all facilities worldwide had to be changed to make this possible. For example, forbidding the use of forced labor and child labor is now explicitly spelled out in the staffing policy, even though TSMC has never engaged in such employment practice. In the employee grievance procedure, anonymity can now be guaranteed to ensure employees are able to raise any concerns without fear of retaliation.

TSMC has also established its own Supplier Code of Conduct based upon the EICC Code. Available in both English and Chinese, the Supplier Code of Conduct is published on the TSMC Supply Online to increase its accessibility for workers in the supply chain. All suppliers are required to sign a compliance agreement and agree to be bound by the Code before they could do business with TSMC. On top of that, TSMC also obliges its direct suppliers to ensure that the Code requirements are met by their sub-suppliers, contractors, and service providers. To ensure that the Code stays relevant to evolving issues and trends, TSMC reviews the Code at least once every two years. In fact, the Code has seen three revisions since its inception, each time getting more stringent than before.

The EICC Code of Conduct is a set of standards on social, environmental and ethical issues in the electronics industry supply chain and is in alignment with the UN Guiding Principles on Business and Human Rights, as well as key international human rights standards including the ILO Declaration on Fundamental Principles and Rights at Work and the UN Universal Declaration of Human Rights. The Code of Conduct contains provisions in the following areas:

Labor
• Freely Chosen Employment
• Young Workers
• Working Hours
• Wages and Benefits
• Humane Treatment
• Non-Discrimination
• Freedom of Association
Health and Safety
• Occupational Safety
• Emergency Preparedness
• Occupational Injury and Illness
• Industrial Hygiene
• Physically Demanding Work
• Machine Safeguarding
• Sanitation, Food, and Housing
• Health and Safety Communication
Environmental
• Environmental Permits and Reporting
• Pollution Prevention and Resource Reduction
• Hazardous Substances
• Wastewater and Solid Waste
• Air Emissions
• Materials Restrictions
• Storm Water Management
• Energy Consumption and Greenhouse Gas Emissions
Ethics
• Business Integrity
• No Improper Advantage
• Disclosure of Information
• Intellectual Property
• Fair Business, Advertising and Competition
• Protection of Identity and Non-Retaliation
• Responsible Sourcing of Minerals
• Privacy
Management System
• Company Commitment
• Management Accountability and Responsibility
• Legal and Customer Requirements
• Risk Assessment and Risk Management
• Improvement Objectives
• Training
• Communication
• Worker Feedback and Participation
• Audits and Assessments
• Corrective Action Process
• Documentation and Records
• Supplier Responsibility

Your feedback on TSMC's progress is appreciated.

For more information or to provide feedback on our CSR strategy, please contact us at csr@tsmc.com.
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