Table:
| Year | FY 2016 | FY 2017 | FY 2018 | FY 2019 |
| --- | --- | --- | --- | --- |
| Total reported cases | 116 | 113 | 150 | 205 (Note 1) |
| Ethics-related cases | 16 | 20 | 14 | 26 |
| Cases investigated and verified as ethics violations | 2 | 4 | 1 | 2 (Note 2) |
| Sexual Harassment Investigation Committees Formed | 5 | 7 | 3 | 4 |
| Cases investigated and verified as violations | 5 | 3 | 3 | 4 (Note 3) |
Paragraphs:
Reporting Channels and Whistleblower Protection
To ensure that our conduct meets relevant legal requirements and the highest ethical standards under the Ethics Code, TSMC provides multiple channels for reporting business conduct concerns.
First of all, our Audit Committee approved and we have implemented the “Complaint Policy and Procedures for Certain Accounting and Legal Matters” and “Procedures for Ombudsman System” that allow employees or any whistleblowers with relevant evidence to report any financial, legal, or ethical irregularities anonymously through either the Ombudsman or directly to the Audit Committee.
TSMC maintains additional internal reporting channels for our employees. To foster an open culture of ethics compliance, we encourage our employees and the third parties we do business with to report any suspected noncompliance with law or relevant TSMC policy.
TSMC treats any complaint and the investigation thereof in a confidential and sensitive manner, and strictly prohibits any form of retaliation against any individual who in good faith reports or helps with the investigation of any complaint. Due to the open reporting channels, TSMC receives reports on various issues from employees and external parties such as our customers and suppliers from time to time. Below is a summary of the Number of Reported Incidents.
Note 1: Among the 205 cases, 132 were related to employee relationship, 47 cases related to other matters (e.g. employee’s individual interest or private matters), and 26 cases related to ethical matters.
Note 2: One case involved an employee who requested a supplier to reserve a hotel and pay advance accommodation fees during his business trip, actions which violate TSMC policy, and the employee was disciplined. Another case involved an employee who abused his work relationship by requesting a supplier to make a personal loan to the employee, a severe violation of our Ethics Code, and the employee was terminated.
Note 3: After the investigation by TSMC’s Sexual Harassment Investigation Committee, four employees involved in confirmed cases of sexual harassment received severe discipline from the Company.
Question:
Which process allow employees or any whistleblowers with relevant evidence to report any financial, legal, or ethical irregularities anonymously?
Answer: “Complaint Policy and Procedures for Certain Accounting and Legal Matters”, “Procedures for Ombudsman System”