Related Policy

Tokyo Electron(TEL) has set various CSR-related policies, based on which CSR programs are implemented at each department.

CSR Policy

TEL considers CSR to be the embodiment of its Corporate Philosophy, which has been firmly upheld since its founding. We pursue sustainable operations from the viewpoints of corporate governance, legal and regulatory compliance and business ethics while creating new value through our products and services. Based on these efforts, we implement CSR activities to help address social issues. We will continue to pursue CSR activities to build stakeholder trust, improve corporate value and, by doing so, promote the growth of a sustainable and dream-inspiring society.

Corporate Philosophy

Human Rights Policy

TEL recognizes corporate social responsibility and believes that it is important for us to conduct ourselves with a strong sense of integrity. We recognize the importance of human rights and the responsibility of businesses to respect human rights. We have firmly upheld human rights since our founding as reflected in the spirit of “the Corporate Philosophy” and “the Management Policies” of the TEL group. We incorporate the concept of respect into every aspect of our business activities, and strive for the creation of a corporate culture that enables each person to realize his or her full potential and freely enjoy their livelihoods. We also give the highest consideration to the health and safety of every person and respect his or her dignity. For us, respecting human rights means a significant undertaking not only to fulfill our responsibility for eliminating adverse impacts on people caused through our business activities, but also those who support our business activities, and contribute to the realization of a sustainable dream-inspiring society.

The Principles & Scope of Our Human Rights Policy

We have committed to respect human rights in line with the United Nations Guiding Principles on Business and Human Rights, in addition to the International Bill of Human Rights and the International Labor Organization’s Declaration on Fundamental Principles and Rights at Work that are referred to in the Guiding Principles. We also refer to the Ten Principles of the United Nations Global Compact*1 as well as the RBA®*2 Code of Conduct in order to grasp the demands of the times and human rights issues in our industry.

We respect human rights of all directly hired individuals including contract workers, part-timers and agency workers (“employees”) of TEL Limited and its consolidated subsidiaries (“TEL group”); as well as employees of business partners of TEL group, especially those within our supply chain. Furthermore, we respect human rights of the customers who may be affected by safety of products and services manufactured and/or provided by TEL group.

Human Rights of Most Importance

TEL believes our most significant focuses are in the following areas:

・Freedom, Equality & Non-Discrimination
We value the diversity of employees. We will not engage in or allow discrimination based on race, color, age, gender, sexual orientation, gender identity and expression, ethnicity or national origin, disability, pregnancy, religion and on similar grounds*3, in hiring and employment practices such as posting, access to training, wages, rewards and promotions. We have zero tolerance for any type of harassment in any work-related circumstance.
・Freely Chosen Employment
We have zero tolerance for child*4 labor, forced labor*5, bonded labor*6 and human trafficking.
・Product Safety & Workplace Health and Safety
We address health and safety through taking steps to ensure that our products and services do not threaten the life and health of the people who manufacture, provide or use them.
・Freedom of Association
We create opportunities for open-minded dialogue with employees. We respect the right of employees to freely associate (form and join groups) and to voluntarily discuss and negotiate their relations with their employers as well as respect the right of the employees to refrain from such activities.
・Appropriate Working Hours & Breaks/Holidays/Vacations
We respect the right of employees to live a healthy life. We conduct our business in compliance with all applicable laws and regulations relating to working hours, breaks, holidays and vacation days.

Human Rights Impact Assessment & Remediation Process

We will build and operate a human rights impact assessment and remediation process*7 framework. Through this framework, we will strive for the prevention, mitigation and remediation of, and avoidance of contributing to, adverse human rights impacts if they exist either directly or indirectly through our own activities and those activities associated with our business relationships.

We will also comply with all applicable laws and legislations of countries and regions where we operate. When faced with conflicting requirements with internationally recognized human rights principles, we will respect those principles to the greatest extent possible in the circumstances and will be able to present our efforts in this regard.

We will establish a human rights risk assessment process that will identify and assess our actual and potential adverse human rights risks and impacts, and respond to identified risks and impacts. The policy will be appropriately updated as needed based on the results of the process. We will also conduct periodical reviews of the effectiveness of these responses, and report on our human rights performance. We will also establish an effective operational-level grievance mechanism.

Communication & Training

We will communicate this policy to all employees, business partners and other relevant stakeholders including our customers and will provide training for all the executives and employees of TEL group. In addition, we believe it is essential for our business partners to conduct their business activities with respect for human rights. For that reason, we require our business partners to comply with not only laws and regulations in the countries and regions they operate but also with the RBA Code of Conduct to which we refer.

We will continuously report on progress of the implementation of this policy to the public.

*1: United Nations Global Compact; We expressed our support of the Ten Principles of the United Nations (UN) Global Compact.
*2: Responsible Business Association; We are a member of RBA, a CSR alliance in the industry that establishes a code of conduct on labor, health & safety, environmental and ethical issues.
*3: This includes political affiliation, union membership, covered veteran status, protected genetic information or marital status.
*4: Any person under the age of 15, or under the age for completing compulsory education, or under the minimum age for employment in the country, whichever is greatest.
*5: All work or service that is exacted from any person under the menace of any penalty or undue disadvantage and for which the said person has not offered himself / herself voluntarily.
*6: Slavery-like status or condition of a worker arising from his or her pledge to repay his/her or his/her relatives' debt.
*7: A process to identify human rights risks, to prevent them from becoming actual adverse impacts on human rights and to address them in case human rights risks have become actual adverse impacts on human rights.

Business Ethics

Ⅰ Principles

Compliance with Applicable LawsTEL group board members and employees must comply at all times with the applicable laws and regulations of each country and region as well as with international regulations, in doing the global business activities, while abiding with corporate ethics and putting them into practice in a spirit of good faith.
Acting in Accordance with Social ConscienceTEL group board members and employees must act in accordance with social conscience based on a high ethical awareness.
Maintaining Harmonious Relationships with Local CommunitiesTEL group board members and employees must be aware that both themselves and the company are members of their local communities, and must strive to achieve mutually beneficial development while collaborating with these communities.

Ⅱ Honest and Fair Business Activities

Ⅱ-1 Technology, Safety, and the Environment
Ensuring Safety and Pursuing QualityTEL group board members and employees must ensure safety and pursue quality in all their business activities including development, manufacturing, sales, service, and administration.
Promoting Environmental Preservation ActivitiesTEL group must conduct its business activities while maintaining harmony with the global environment.
Ethics in ManufacturingTEL group board members and employees must engage in manufacturing with a high ethical awareness and a spirit of good faith.
Ⅱ-2 Fair Trade
Implementing Fair and Open CompetitionTEL group must not engage in any conduct that hinders competition in fair and open markets.
Fair Business with SuppliersTEL group selects suppliers based on fair standards. When conducting business with suppliers, we must not use our dominant bargaining position in atransaction to unfairly harm the interests of suppliers.
Respect for Intellectual PropertyTEL group respects the intellectual properties both of ours and also third parties, and protects, manages and utilizes them appropriately.
Strict Export/Import ControlsTEL group board members and employees must comply with all applicable laws and the company’s regulations based there on concerning the import and export of goods and transfers of technology.
Reasonable Exchanges of Gifts and Entertainment within the Bounds of Common SenseTEL group board members and employees must not give gifts to, or receive them from, a company or individual based on a business relationship, beyond the bounds of common business practice in the relevant location. Giving or receiving gifts of cash or cash equivalents is prohibited, regardless of the amount. Furthermore, entertainment with companiesor individuals with whom one has a work-based relationship must be carried out moderately within the bounds of common sense.
Ⅱ-3 Relationship between the Company and Individuals
Prohibition of Conduct Causing Conflicts of InterestsTEL group board members and employees must not, without due cause, engage in conduct that is, or appears to be, to their own personal benefit and contrary to the interests of the company (conduct causing conflicts of interests), or which runs the risk of leading to such conduct. In addition, TEL group board members and employees must not use their position in their work for their own personal benefit.
Prohibition of the Improper Use of Company AssetsTEL group board members and employees must not improperly use company assets for their own personal benefit.
Prohibition of Conduct of HarassmentTEL group does not allow any form of harassment in the workplace.

Ⅲ Being a Good Corporate Citizen

Prohibition of Insider TradingTEL group board members and employees must not engage in the purchase or sale of stocks on the basis of information not disclosed to the public that they obtained in connection to their work duties or business transactions (insider trading).
Prohibition of Political Activities and ContributionsTEL group board members and employees must not engage in political activities at the workplace. In addition, TEL group does not make donations of money or company assets to politicians (including candidates) or political parties.
Prohibition of Involvement in Antisocial ForcesTEL group must not have any relationship, including business relationships, whatsoever with antisocial forces that are likely to disrupt the public order, safety of the public, or the corporate activities. In addition, TEL group must not provide any financial support or accommodation for any reason to antisocial forces.
Respect for Human RightsTEL group respects human rights and does not discriminate on the basis of gender, nationality, age, race, creed, religion, mental or physical disabilities, sexual orientation, or any other reason. TEL group does not use forced labor or child labor.

Personnel Policy

Business growth requires that each employee, as the core of the company, have creativity, a positive attitude, flexibility, enthusiasm, and a sense of responsibility. TEL group seeks to be a corporation where a diverse range of employees can work to their full potential.

Respect for Human RightsWe respect the character and individuality of each person and strive to create work environments without any infringement of human rights.
Diverse WorkforceWe strive to respect and understand differences in values arising from gender, nationality, age, race, creed, religion, and other attributes and to be a corporation where a diverse range of employees can work to their full potential.
Human Resource DevelopmentWe believe that each employee is the source of value creation and support the development of skills by employees.
Employee Assessment and TreatmentWe provide opportunities to those employees with the enthusiasm for personal growth and engage in fair evaluation of skills and employee treatment so that employees with significant results can be rewarded.
Occupational Safety and HealthWe place the highest priority on ensuring the safety and health of employees and maintain environments such that employees can work safely at our workplaces and local residents feel a sense of reassurance.
Work-Life BalanceWe implement measures to enable employees to achieve a good work-life balance.

Safety Policy

TEL group performs a range of business activities including development, manufacturing, transportation, installation, and maintenance with the highest priority on the safety and health of all personnel from top management to frontline staff and makes proactive and continuous improvements to enhance safety and promote good health.

Safety FirstBased on the principle of "safety first," we strive to create safer products and work to maintain and improve the safety of all people involved with our products and healthy workplace environments.
Pursuit of Safe TechnologiesWith an awareness of the factors that impair safety and health in our various business activities, we continuously strive to create safer and more secure workplaces by making improvements concerning those factors and through intrinsically-safe equipment designs and superior service capabilities.
Management and Employees ResponsibilityAll employees maintain an awareness of potential problems and of the need for improvement concerning the maintenance and enhancement of safety and health at all workplaces, and management and employees act in accordance with their respective responsibilities.
Legal ComplianceWe comply with safety and health laws and regulations and international rules, take into consideration industry guidelines, and strive to promote safety and health.
Collaboration and Cooperation with SocietyBased on common understanding with a broad range of stakeholders, we cooperate and collaborate with society and work to appropriately meet their expectations.

Quality Policy

TEL seeks to provide the highest quality products and services. This pursuit of quality begins at development and continues through all manufacturing, installation, maintenance, sales, and support processes. Every TEL employee must work to deliver quality products, quality services, and innovative solutions that enable customer success.

Quality FocusFocusing on quality to satisfy customers, meet production schedules, and reduce required maintenance even with temporary cost increases.
Quality Design and AssuranceBuilding quality into products and assure in-process quality control, from the design and development phase throughout every process.
Quality and TrustWhen a quality-related problem occurs, working as a team to perform thorough root cause analysis and resolve problems as quickly as possible.
Continual ImprovementEnsuring customer satisfaction and trust by establishing quality goals and performance indicators and by implementing continual improvement using the PDCA cycle.
Stakeholder CommunicationListening to stakeholder expectations, providing timely product quality information, and making adjustments as needed.

Environment Policy

TEL group aims to solve environmental issues through our leading-edge technology and services under slogan of "Technology for Eco Life." We strive to contribute to the establishment of a sustainable society by reducing the Group's impact on the consumption of resources, on biodiversity and on climate change by taking actions that both directly and indirectly contribute to the protection and conservation of the environment.

Environmental Goals and Continuous ImprovementWe establish environmental goals and continual improvement of the environmental management system to enhance environmental performance throughout our product lifecycle.
Compliance with Applicable LawsWe continually enhance our knowledge of environmental issues to not only comply with applicable laws, but also set additional voluntary standards.
Environmental Contribution with ProductWe develop environmentally complimentary products through our leading-edge technology. TEL group cooperates with our customers and suppliers to strive for the prevention and improvement of environmental impacts to contribute to a sustainable society.
Operational Environmental Impact Reduction and PreservationWe quantitatively analyze and reduce the environmental impact of TEL global operations, with activity from all levels of employees and operations to prevent pollution and protect the environment.
Collaboration and Cooperation with Stakeholders and SocietyWe actively promote collaboration and cooperation with all our stakeholders to achieve mutual understanding and conformance to expectations.

Revision:July 1, 2016

Procurement Policy

TEL group aims to solve environmental issues through our leading-edge technology and services under slogan of "Technology for Eco Life." We strive to contribute to the establishment of a sustainable society by reducing the Group's impact on the consumption of resources, on biodiversity and on climate change by taking actions that both directly and indirectly contribute to the protection and conservation of the environment.

1. Compliance with Applicable Laws, Social Norms, and the RBA Code of Conduct*We engage in procurement activities based on business ethics and with integrity, in compliance with the laws, regulations, and social norms of each country as well as the RBA Code of Conduct.

* The RBA Code of Conduct: Responsible Business Alliance Code of Conduct

http://www.responsiblebusiness.org/standards/code-of-conduct/
A code of conduct drawn up by the RBA. The RBA Code of Conduct establishes standards to ensure that working conditions are safe, that workers are treated with respect and dignity, and that business operations are environmentally responsible and conducted ethically.

2. Priority on the EnvironmentWe conduct procurement with full consideration for reduction of environmental impact and protection of the global environment.
3. Fair Business PracticesWe continuously seek high-value technologies and create broad opportunities for their business transactions based on the precondition of open competition.
4. PartnershipWe prioritize relationships of trust based on mutual understanding with suppliers and conduct activities in the pursuit of mutual continuous growth.
5. Information ManagementWe properly manage the confidential information of suppliers that we obtain in the course of business

Procurement Policy - Supplement: Requests to Our Suppliers

The TEL group aims for sound and sustainable growth together with suppliers to contribute to the development of society. We will strive to achieve this, with the cooperation of our suppliers. We therefore request your active efforts in the following matters.

1. Compliance with Applicable Laws, Social Norms, and the RBA Code of Conduct

In addition to complying with the following matters, we ask our suppliers to observe the applicable laws and social norms in the countries and regions where they engage in business, as well as the RBA Code of Conduct.
·Compliance with prohibition of child labor, and forced labor, and with other labor-related laws and regulations
·Respect for fundamental human rights, beginning with the prohibition of discrimination
·Protection of intellectual property rights
·Compliance with export/import-related laws and regulations
·Prohibition of involvement with antisocial forces

[Conflict minerals] We see our efforts with regard to conflict minerals as part of our corporate social responsibility, and promote all efforts to eliminate any use of raw materials that utilize conflict minerals which have been mined or extracted with illicit funds or by illegal methods, as well as components or parts that contain such conflict minerals. To this end, we are conducting due diligence surveys of our supply chain, using the Conflict Minerals Reporting Template (CMRT) and referring to the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas. We request that all suppliers work with us in dealing with conflict minerals.

2. Working Conditions

We request that suppliers respect fundamental human rights, also prepare independent standards, and provide safe and healthy work environments.

3. Environmental Activities

In accordance with "TEL Green Procurement Guidelines", we request that, together with the acquisition of ISO 14001 and the development of a structure for environmental conservation, suppliers also actively engage in environmental conservation activities and strive to use parts and materials, and methods of production, that have a reduced environmental impact and that consider resources conservation.

4. Management System

We request that management systems are developed and continuously improved, including systems related to safety, health, the environment, product quality and labor, in accordance with the corporate procurement agreement or any specific agreements or arrangements with the TEL group.

5. Technical Skills

We request that, in order to provide products and services that conform to customers' needs, suppliers always strive for improved technical skills and technological innovations.

6. Quality

We request that suppliers provide high quality products and services which meet the specifications required by the TEL group, by means of building quality during the design phase, and strengthening change control.

7. Supply, and Provide Systems

We request that suppliers provide a stable and flexible supply of products and services to deal with huge volatility in demand. Also, we request that suppliers prepare precautionary steps and continuity plans to reduce risks in the event of unforeseen situation such as disaster.

8. Price

We request that products and services are offered at competitive prices, and that continuous effort is made to reduce costs.

9. Business Management

For the continuation of our business transactions, we ask that sound and stable business management be implemented. We also request that the financial and company information needed to confirm those matters is disclosed.

10. Information Security

We request that a system be provided which prevents the leaking of confidential information and that any information acquired in dealings with the TEL group is strictly controlled.

Tax Policy

Global Tax Policy

Tokyo Electron Group, a global corporation, has published this global tax strategy as a guideline for tax practice, especially with regards to global tax compliance. In disclosing this approach to the groups’ tax governance, the company aims to maintain and improve its compliance structure, and manage its global tax risk. In addition the company seeks to ensure transparency in its tax affairs.

1. Compliance and Tax Governance

Tokyo Electron Group operates its business in compliance with all local tax legislation, the OECD transfer pricing guidelines and the BEPS (Base Erosion and Profit Shifting) Action Plan.

Under the responsibility of the Chief Executive Officer (CEO), the tax governance of Tokyo Electron Group is supervised and controlled by TEL headquarters’ Accounting Department. This is done with the cooperation of regional management who have responsibility for tax affairs in the Group’s overseas companies. The objective is to establish a framework under which the global tax risk is managed.

Tokyo Electron Group appropriately responds and adapts to the changing global taxation environment, including the latest tax legislation changes, in the countries and regions where its group companies and business relations operate.

2. Tax Planning and Transfer Pricing

Tokyo Electron Group’s tax planning is built on sound business activity and it does not enter into contrived or artificial arrangements for the purposes of avoiding tax. The Groups policy is to pay tax as appropriate in each jurisdiction in which it has operations and creates value.

The Group conducts cross-border intercompany transactions on an arms-length basis by determining the function and risk contribution of each of the parties involved, determining an appropriate distribution of profit consistent with the facts of each transaction.

3. Relationship with tax authorities

Tokyo Electron Group seeks to build a strong relationship of trust with the tax authorities by demonstrating open mindedness and transparency. The Group will work to apply best practices through communications with the tax authorities on all significant business transactions that have an impact on its global tax affairs.

The Group also makes every effort to avoid the risk of double taxation by utilizing the available APA programs for pre-agreement with the tax authorities as appropriate.

UK Tax Strategy