TPSCo Corporate Social Responsibility Principles

All employees of TPSCo are actively engaged in activities that can carry out Corporate Social Responsibility (CSR) and contribute to the development of society

In order to make these activities more articulately and specifically, TPSCo has developed CSR Principles that sets the key code of conduct for Labor, Health and Safety, Environment, Ethics, and Management System. These principles are in compliance with major international human right standards including “RBA (Responsible Business Alliance) Code of Conduct”, “ILO Declaration”, and “Declaration of Human Rights ”TPSCo endorses the RBA Code of Conduct and aims to realize sound business by promoting compatibility with it and its standard in accordance with the prescript management systems. We shall require tier 1 suppliers, at the minimum, to acknowledge and implement these principles. Furthermore, we shall carry out all business activities in full compliance with applicable laws, rules and regulations of the country.

Labor and Human Rights

TPSCo shall respect human rights and treat all workers including temporary, migrant, student, contract, direct employees, and any other type of worker, with dignity and consideration.

Principles on Labor and Human Rights are as follows:

1. Prohibition of Forced Labor
We do not use forced, bonded (including debt bondage) or indentured labor, involuntary or exploitative prison labor, slavery or trafficking of persons. This includes transporting, harboring, recruiting, transferring or receiving persons by means of threat, force, coercion, abduction or fraud for labor or services. Moreover, we do not impose unreasonable restrictions on workers’ freedom of movement within facilities as well as entering / exiting company-provided facilities including, if applicable, workers’ dormitories or living quarters. When recruiting a worker from abroad, we shall provide him/her with a written employment agreement in his/her native language that contains a description of terms and conditions of employment. Foreign migrant workers must receive the employment agreement prior to the departure from his/her country of origin. We do not make any changes to the employment contract that would be disadvantageous to workers after his/her arrival at the receiving country. All work must be voluntary. And workers are free to leave work at any time with submitting prior notice. Employers and, agents, and sub-agents’ may not hold or otherwise destroy, conceal, or confiscate or deny access by employees to their identity or immigration documents, such as government-issued identification, passports, or work permits. Workers do not need to pay any fees associated with arranging their employment to employers’ agents or sub-agents recruitment fees or other related fees for their employment. If any fact that a worker has paid expenses related to his/her employment is found, employers or agents shall repay such fees to the worker.

2. Young Workers

We only employ workers who have reached the age of 15 years of age, or the applicable minimum legal age for employment, or the applicable age for completion of compulsory education, whichever is highest. If underage applicant (a child labor) is identified, assistance/remediation is provided. We do not make workers under the age of 18 (Juvenile Workers) to perform works that are likely to jeopardize their health or safety, including night shifts and overtime. In addition, we provide legitimate workplace apprenticeship programs that complies with laws and regulations as needed. For all student workers, we ensure proper management through proper maintenance of student records, rigorous due diligence of educational partners, and protection of students’ rights in accordance with applicable laws and regulations and provide appropriate support and training. The wage rate for student workers, interns, and apprentices shall be at least the same wage rate as other entry-level workers performing equal or similar tasks.

3. Working Hours

Working hours are not to exceed the maximum set by local law. Furthermore, a workweek should not be more than 60 hours per week, including overtime, except in emergency or unusual situations. All overtime must be paid and voluntary. Workers shall be allowed at least one day off every seven days.

4.Wages and Benefits

Compensation paid to workers shall comply with all applicable wage laws, including those relating to minimum wages, overtime hours and legally mandated benefits. In compliance with local laws, workers shall be compensated for overtime at pay rates greater than regular hourly rates. Deductions from wages as a disciplinary measure shall not be permitted. For each pay period, we provide employees with a timely and understandable wage statement that includes sufficient information to verify accurate compensation for work performed. All use of temporary, dispatch and outsourced labor will be within the limits of the local law.

5. Humane Treatment

We eliminate harsh or inhumane treatment including violence, gender-based violence, sexual harassment, sexual abuse, corporal punishment, mental or physical coercion, bullying, public shaming, or verbal abuse of workers. In the event of detecting signs of such acts, we shall deal with them in a prompt and appropriate manner. Furthermore, we establish disciplinary punishment and preventive measures and announce them throughout the company.

6. Non-Discrimination/Non-Harassment

We aim at the establishment of a workplace free of harsh and inhumane treatment. We shall not engage in discrimination or harassment based on race, color, age, gender, sexual orientation, gender identity/expression, ethnicity/national origin disability, pregnancy, religion, political affiliation, union membership, covered veteran status, protected genetic information or marital status in hiring and employment practices such as wages, promotions, rewards, and access to training. We provide workers with reasonable accommodation for religious practices. In addition, we do not conduct medical tests, including pregnancy or virginity tests or physical exams that may be used in a discriminatory way to workers or potential workers.

7. Freedom of Association

We shall respect the right of all workers to form and join trade unions of their own choosing, to bargain collectively and to engage in peaceful assembly as well as respect the right of workers to refrain from such activities. Workers and/or their representatives shall be able to openly communicate and share ideas and concerns with management regarding working conditions and management practices without fear of discrimination, reprisal, intimidation or harassment.

Health and Safety

TPSCo recognizes that in addition to minimizing the incidence of work-related injury and illness, a safe and healthy work environment enhances the quality of products and services, consistency of production and worker retention and morale. We also recognize that ongoing worker input and training are essential to identifying and solving health and safety issues in the workplace. These principles were developed by referring to ISO45001 and ILO.

Principles on Health and Safety are as follows:

1. Occupational Safety

We shall identify and assess potential hazards (e.g., chemical, electrical, and other energy sources, fire, vehicles, and fall hazards, etc.) are to be identified and assessed, mitigated using the Hierarchy of Controls, which includes eliminating the hazard, substituting processes or materials, controlling through proper design, implementing engineering and administrative controls, preventative maintenance, safe work procedures (including lockout/tagout) , and providing ongoing occupational health and safety training. Where hazards cannot be adequately controlled by these means, we are to provide workers with appropriate, well-maintained, personal protective equipment and educational materials about risks to them associated with these hazards. Besides, we shall take appropriate measures to remove or reduce any workplace health and safety risks to pregnant women and nursing mothers, including those associated with their work assignments, and provide reasonable accommodations for nursing mothers based on laws and regulations.

2. Emergency Preparedness

We are engaged in activities to identify and assess potential emergencies and develop emergency response plans/procedures so as to minimize the damage to life, the environment and property. Emergency response plans/procedures include emergency reporting, employee notification and evacuation procedures, worker training and drills. Emergency drills should be executed on an annual basis or as required by local law, whichever is more stringent. Emergency plans should also include appropriate fire detection and suppression equipment, clear and unobstructed egress adequate exit facilities, contact information for emergency responders, and recovery plans. Such plans and procedures shall focus on minimizing harm to life, the environment, and property.

3. Occupational Injury and Illness

We shall provide procedures and systems are to be in place to prevent, manage, track and report occupational injury and illness, including provisions to encourage worker reporting, classify and record injury and illness cases, provide necessary medical treatment, investigate cases and implement corrective actions to eliminate their causes, and facilitate the return of workers to work. 

4. Industrial Hygiene

We aim to reduce any risks including exposure of workers to chemical, biological and physical agents on the Hierarchy of Controls. . If any potential hazards were identified, participants shall look for opportunities to eliminate and/or reduce the potential hazards. If elimination or reduction of the hazards is not feasible, potential hazards are to be controlled through proper design, engineering, and administrative controls. When risks cannot be adequately controlled by such means, workers are to be provided with and use appropriate, well-maintained, personal protective equipment free of charge. Protective programs shall be ongoing and include educational materials about the risks associated with these hazards.

5. Physically Demanding Work

We shall conduct risk assessment aiming to reduce any risks on physically demanding tasks, including manual material handling and heavy or repetitive lifting, prolonged standing and highly repetitive or forceful assembly tasks.

6. Machine Safeguarding

When introducing production and other machinery, we shall confirm that whether it meets the criteria in accordance with facility assessment standard. If it does not meet the standard, we shall make improvements including physical guards, interlocks and barriers

7. Sanitation, Food, and Housing

We shall provide ready access to clean toilet facilities, potable water and sanitary food preparation, storage, and eating facilities to workers based on laws and regulations. We shall provide employees with clean/safe dormitories whose facilities are maintained with appropriate emergency egress, hot water for bathing and showering, adequate lighting heat and ventilation, individually secured accommodations for storing personal and valuable items, and reasonable personal space along with reasonable entry and exit privileges.

8. Health and Safety Communication

We shall provide workers with appropriate workplace health and safety information and training in the language of the worker or in a language the worker can understand for all identified workplace hazards that workers are exposed to, including but not limited to mechanical, electrical, chemical, fire, and physical hazards. Health and safety related information shall be clearly posted in the facility or placed in a location identifiable and accessible by workers. Training is provided to all workers prior to the beginning of work and regularly thereafter. In addition, we shall clarify health safety concerns through Hiyari-Hatto Activities and Whistle-blowing System without retaliation ,and take appropriate measures.

Environment

TPSCo recognizes that environmental responsibility is integral to producing world-class products. We shall identify the environmental impacts and minimize adverse effects on the community, environment and natural resources, biodiversity, and ecosystems within their manufacturing operations while safeguarding the health and safety of the public.

Principles on Environment are as follows:

1. Environmental Permits and Reporting

We shall obtain all required environmental permits (e.g. discharge monitoring), approvals and registrations maintained and follow kept current and their operational and reporting requirements.

2. Pollution Prevention and Resource Reduction

We shall minimize or eliminate emissions and discharges of pollutants and generation of waste, or by practices such as adding pollution control equipment, modifying production, maintenance, and facility processes; or by other means. Besides, we aim at conserving, such as modifying production, maintenance and facility processes, materials substitution, recycling, and reusing of the use of natural resources, including water, fossil fuels, minerals and virgin forest products.

3. Hazardous Substances

We shall identify chemicals waste, and other materials posing a hazard to humans or the environment and manage them with labelling to ensure their safe handling, movement, storage, use, recycling or reuse and disposal.

4. Solid Waste

We shall implement a systematic approach to identify, manage, reduce, and responsibly dispose of or recycle solid waste (non-hazardous).

5. Air Emissions

We shall characterize air emissions of volatile organic chemicals, aerosols, corrosives, particulates, ozone depleting substance and combustion byproducts generated from operations, and routinely monitored, controlled, and treated as required prior to discharge, Ozone-depleting substances are to be effectively managed in accordance with the Montreal Protocol and applicable regulations. We shall conduct routine monitoring of the performance of our air emission control systems.

6. Materials Restrictions

We shall adhere to all applicable laws, regulations and customer requirements regarding prohibition or restriction of specific substances in products and manufacturing, including labeling for recycling and disposal.

7. Water Management

We shall implement a water management program that characterizes and monitors water sources the way of use and discharge, seek opportunities to conserve water, and control channels of contamination. All wastewater is to be characterized, monitored, controlled, and treated as required prior to discharge or disposal. We shall conduct routine monitoring of the performance of our wastewater treatment and containment systems to ensure optimal performance and regulatory compliance.

8. Energy Consumption and Greenhouse Gas Emissions

We establish a corporate-wide multi-year greenhouse gas reduction program. We shall track and document energy consumption and all relevant Scopes 1 and 2 greenhouse gas emissions, and publicly reported against greenhouse gas reduction plan. We shall look for cost effective methods to improve energy efficiency and to minimize their energy consumption and greenhouse gas emissions. 

Ethics

TPSCo recognizes that environmental responsibility is integral to producing world class products. In manufacturing operations, adverse effects on the community, environment and natural resources are to be minimized while safeguarding the health and safety of the public.

Principles on Environment are as follows:

1. Business Integrity

We shall uphold the highest standards of integrity in all business interactions and do not tolerate any bribery, corruption, extortion and embezzlement under any circumstances.

2. No Improper Advantage

We do not promise, offer, authorize, give or accept bribes or other means of obtaining undue or improper advantage. This prohibition covers promising, offering, authorizing, giving or accepting anything of value, either directly or indirectly through a third party, in order to obtain or retain business, direct business to any person, or otherwise gain an improper advantage. Besides, we shall implement the monitoring and enforcement to ensure compliance with anti-corruption laws.

3. Disclosure of Information

We shall perform all business dealings transparently by reflecting them on business books and records accurately. We disclose information regarding participant labor, health and safety, environmental practices, business activities, structure, financial situation and performance in accordance with applicable regulations and prevailing industry practices. We do not accept falsification of records or misrepresentation of conditions or practices in the supply chain.

4. Intellectual Property

We shall respect intellectual property rights and manage technology and know-how on the premise of protecting intellectual property rights. Besides, we shall safeguard customer and supplier information.

5. Fair Business, Advertising, and Competition

We shall comply with standards of fair business, advertising, and competition.

6. Protection of Identity and Non-Retaliation

We shall protect the confidentiality and anonymity of suppliers/workers who blow the whistle and their contents unless otherwise prohibited by law. In addition, we shall establish a communicated process for suppliers/workers so that they can raise any concerns without fear of retaliation.

7. Responsible Sourcing of Minerals

We shall adopt a policy and exercise due diligence on the source and chain of custody of the tantalum, tin, tungsten, and gold in the products they manufacture to reasonably assure that they are sourced in a way consistent with the Organisation for Economic Co-operation and Development (OECD) Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas or an equivalent and recognized due diligence framework.8. Privacy

We shall commit to protecting the reasonable privacy expectations of personal information of everyone they do business with, including suppliers, customers, consumers and employees. We shall comply with privacy and information security laws and regulatory requirements when personal information is collected, stored, processed, transmitted, and shared.

 

8. Privacy

We shall commit to protecting the reasonable privacy expectations of personal information of everyone they do business with, including suppliers, customers, consumers and employees. We shall comply with privacy and information security laws and regulatory requirements when personal information is collected, stored, processed, transmitted, and shared.

Management Systems

TPSCo shall establish a management system aiming at the following to meet social responsibilities.

a. Compliance with applicable laws, regulations, and customer requirements related to our business activities
b. Conformance with these principles
c. Identification and mitigation of operational risks related to these principles

Principles on Management Systems are as follows:

1. Company Commitment

We shall develop CSR Principles affirming our commitment to high standards of social and environmental responsibility, ethical conduct, and continuous improvement. We shall post these principles in the facility in the local language.

2. Management Accountability and Responsibility

We shall appoint a chief and board members in charge of implementation on management systems. We shall regularly report status of compliance of these principles to them and improve the management system based on results of a review.

3. Legal and Customer Requirements

We shall collect the latest information on applicable laws, regulations and customer requirements all times and respond it on a timely basis.

4. Risk Assessment and Risk Management

We shall create a mechanism to identify and minimize risks associated with Labor, Health and Safety, Environment, Ethics, Management Systems, and Compliance on business activities.

5. Improvement Objectives

We shall draw up and document criteria, performance objectives, periodic assessment and implementation plans in fulfilling our environmental, and health and safety, social responsibilities and continually improving management systems.

6. Training

We shall periodically conduct training for workers to understand applicable laws and these principles periodically.

7. Communication

We shall provide concrete and accurate information regarding our business performance, practices, and expectations on employees/suppliers/customers, in a timely fashion.

8. Employee Feedback and Participation

We shall create a mechanism that workers can provide information with no hesitation for continually improving our business activities and these principles as well as confirming the degree of understanding on these principles by workers. Employees must be given a safe environment to provide grievance and feedback without fear of reprisal or retaliation.

9. Audits and Assessments

We shall assess Labor, Health and Safety, Environment, Ethics, and Management Systems on business activities periodically, and confirm the state of compliance of laws, regulations, and these principles.

10. Corrective Action Process

We shall create a mechanism, which corrects defects identified by internal/external audits, assessments, reviews, and inspections appropriately.

11. Documentation and Records

We shall store and manage documents and records on Labor, Health and Safety, Environment, Ethics, Management Systems to confirm whether laws, regulations, and these principles are observed or not.

12. Supplier Responsibility

We shall communicate requirements of these principles to suppliers and assess the status of compliance periodically.