Stakeholder Identification - TSMC

TSMC’s Most Admired Company Award (left) and Corporate SocialResponsibility Award from CommonWealth Magazine●Recognized by the Ministry of Economic AffairsIndustry Development Bureau for ”Excellence inVoluntary Greenhouse Gas Reduction”●Recognized by the Executive Yuan, Council of LaborAffairs (CLA) for ”National Industrial Safety andHealth Award”●Chosen for membership in the Dow JonesSustainability World Index for an eighth consecutiveyear, and the only Taiwan member from 2003 to2007●Chosen for CDLI (Carbon Disclosure LeadershipIndex) by Carbon Disclosure Project, and the onlyTaiwan company in the index●Fab 4 Phase 3 was recognized by the U.S. GreenBuilding Council (USGBC) with ”Leadership in Energyand Environmental Design of New Construction(LEED-NC) Gold Class Certification”. TSMC is theonly company in Taiwan with this certification●Fab 14 Phase 3 has passed Taiwan’s “DiamondClass Ecology, Energy Saving, Waste Reduction, andHealth (EEWH)” certification, which is the second“Diamond” class in Taiwan and the first factory toattain this certification●Fab 14 was recognized by the Executive Yuan,Environmental Protection Administration (EPA) for”The Annual Enterprise Environmental ProtectionAward”●Fab 2 was recognized by the Science ParkAdministration (SPA) for ”The Low CarbonEnterprise Award”2.7 International Sustainability IndexesTSMC has not only achieved outstanding businessperformance, but has also done so in the spirit ofgiving back to society. TSMC continuously seekssustainable development, and strives to improveemployee welfare as well as workplace safety. TSMCalso actively participates in community activities,supply chain management, and environmentalprotection.In 2008, TSMC was selected as a member of theDow Jones Sustainability Indexes (DJSI) for an eighthconsecutive year.The Dow Jones Sustainability Indexes were launchedin 999 and TSMC joined in 200. TSMC was thefirst Taiwan company to join the DJSI, and theonly Taiwan company selected for membershipfor eight consecutive years. The DJSI evaluatescompanies along economic, environmental, andsocial dimensions, and this year TSMC achieved thehighest scores in the semiconductor industry for “riskand crisis management”, “product quality and recallmanagement”, “environmental policy/managementsystem” and “climate strategy”. TSMC’s outstandingoverall performance in all three dimensions has onceagain affirmed the company’s achievements andcommitment to sustainable development.The Dow Jones Sustainability Indexes (DJSI), are basedon the cooperation of Dow Jones Indexes, STOXX Ltd.and SAM Group of Zurich, Switzerland. TSMC is amember of the Dow Jones Sustainability World Index,which selects the top 0% of 2,500 major globalcompanies based on economic, environmental, andsocial criteria to provide a benchmark for sociallyresponsible investors.2.8 Membership in Industry AssociationsAs a semiconductor industry leader, TSMC activelyparticipates in trade and industry associations.TSMC executives have been nominated to andhold senior positions in associations including theTaiwan Semiconductor Industry Association, theAssociation of Industries in Science Parks, the ChineseNational Association of Industry and Commerce,the Taiwan Electrical and Electronic Manufacturers’Association, the Mount Jade Science and TechnologyAssociation of Taiwan, the Taiwan Business Councilfor Sustainable Development, and the Taiwan SOCConsortium, holding positions such as Chairman orExecutive Board Director. In addition, many TSMCemployees also contribute to the semiconductorindustry by serving in industry associations ascommittee chairman or vice chairman in professionalcommittees.2.9 Stakeholder Identification andCommunicationTSMC corporate social responsibility activities areled by a CSR core team. The core team’s membersinclude representatives from the Investor Relations,Public Relations, Human Resources, TSMC Education& Culture Foundation, and Risk Management &9

Corporate ESH. The core team identifies stakeholdersand integrate stakeholders’ concerns into routinetasks and annual plans, and maintains flexibility toincorporate ad-hoc issues into annual plans. The coreteam also seeks support from additional departmentsas necessary.TSMC stakeholders include stockholders and investors,employees, suppliers, customers, government,Stakeholder Responsibilities Communication Measures and ChannelsCustomerEmployeeStockholder &InvestorSuppliers● Provide safe, high-quality products and services● Raise satisfaction● Cooperate to fulfill product environmental andsocial responsibility● Respect human rights● Fair evaluation and reward● Employee Development● Employee Wellness● Provide accurate information● Provide reasonable return on investment● Fair trading● Communication of TSMC CSR policy andapproaches● Assist in CSR practicescommunity, and non-profit organizations. TSMChas certain responsibilities to its stakeholders andneeds to communicate with them through variousmeasures and channels so as to understand theirneeds and expectation for TSMC, and also takes theseneeds and expectations into account for corporatesocial responsibility policy and projects. TSMC and itsstakeholder communication measures and channels● Customer satisfaction survey● Technical forum● Cooperate with customers’ productenvironmental and social responsibility surveysand improve where necessary● Incentives● Total communication framework● Employee satisfaction survey● Silicon Garden Magazine● Communication meetings● Annual Shareholder Meeting● Quarterly Institutional Investors’ Conference● Supplier information platform● Supply chain management forum● Supplier and contractor management includingannual auditare described in the table below; more detailedinformation can be found in related chapters of thisreport.2.10 Investor EngagementTSMC’s business strategies and financial policiesaim to uphold and enhance the value of our longtermshareholders. We not only align ourselveswith international standards that demonstrate ourposition and reputation as a premier investment andsustainability champion, but are ranked within thesemiconductor industry as a sustainability leader, andare honored to be a component of the Dow JonesSustainability Index (DJSI) every year since 200. Sincebecoming a publicly listed company in 994, we haveconsistently delivered value to shareholders throughcash dividends, maintaining a strong balance sheet,and keeping one of the highest credit ratings amongtechnology companies.In order to serve investors and the investmentcommunity, TSMC has established a highly effectivecommunication system to disseminate information.CommunityGovernmentNon-profitOrganization● Respect local culture and customs● Prevention of incidents and accidents● Assist in disaster rescue● Participate in public welfare activities● Comply with regulations● Pay taxes● Provide legislative consultation● Support promotion of new regulations● Participate in social welfare activities● Association of Science Park Industries● TSMC Education & Culture Foundation● Internal charity associations● Association of Science Park Industries● Taiwan Semiconductor Industry Association,World Semiconductor Council● Chinese National Federation of Industries● Public legislative hearings● Taiwan Business Council for SustainableDevelopment● Taiwan Corporate Sustainability Forum● Carbon Disclosure Project● Dow Jones Sustainability IndexThe TSMC IR Team’s Many ”Best IR” Rewards0