Related Policy
Tokyo Electron(TEL) has set various CSR-related policies, based on which CSR programs are implemented at each department.
Sustainability and Framework of Corporate Principles
Tokyo Electron’s sustainability initiatives are the practice of its Corporate Philosophy through achieving its Vision. We make clear the material issues in our growth and promote these initiatives. Together with the building of a resilient management foundation, by providing high-value-added products and services, we contribute to the resolution of issues and development of industry and society as well as the achievement of the SDGs.
To be a company that is highly trusted and loved by society, we work on medium- to long-term profit expansion and continuous corporate value enhancement.
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:
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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.
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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.
United Nations Global Compact; We expressed our support of the Ten Principles of the United Nations (UN) Global Compact.
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.
This includes political affiliation, union membership, covered veteran status, protected genetic information or marital status.
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.
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.
Slavery-like status or condition of a worker arising from his or her pledge to repay his/her or his/her relatives' debt.
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.
Code of Ethics
1 Business Practices
| 1-1 Safety and Quality | We pursue safety in our business activities – development, manufacturing, transportation, installation and maintenance of our products – and provide the highest quality products and services that meet customer expectations. |
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| 1-2 Suppliers | We select suppliers based on objective criteria and review their qualifications by ensuring that they comply with laws and regulations as well as our business ethics. |
| 1-3 Export & Import | We are committed to upholding all applicable laws and regulations, and our Company’s internal rules regarding the export and import of goods and technology. |
| 1-4 Fair and Open Competition | We strive to operate in a fair, open and competitive marketplace. |
| 1-5 Bribery and Corruption | We do not bribe anyone, anywhere, for any reason under any circumstances. |
| 1-6 Conflicts of Interest | We make fair and objective decisions in the best interest of the Company, and avoid any action that puts our personal interests ahead of these of the Company’s. |
| 1-7 Political Activities and Contributions | We do not, directly or indirectly, support or make contributions to political parties or candidates using Company finances or assets. |
| 1-8 Money Laundering | TEL Group does not receive the proceeds of criminal activities, as this can amount to the criminal offence of money laundering. Nor do we engage in any relationships with “antisocial organizations.” |
2 Our Assets & Property
| 2-1 Accounting/Tax/Financial Reporting | We prepare financial documents in a timely, accurate and appropriate manner, disclosing all accounting and financial reports in accordance with relevant laws and regulations, and generally accepted accounting principles. |
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| 2-2 Insider Trading | We do not use material non-public or non-disclosed inside information about TEL Group or any other company, including suppliers and customers, to buy, sell, or otherwise transact in securities of TEL Group or any other publicly traded company. |
| 2-3 Intellectual Property | We respect intellectual property and protect, manage, and utilize it appropriately. |
| 2-4 Information Security | We protect TEL Group confidential business information as well as any confidential business information that is entrusted to the Company by our customers and business partners, and prevent information leakage by maintaining a reasonable and appropriate information management framework and complying with rules concerning the handling and protection of the confidential business information including personal information. |
| 2-5 Personal Data | We respect the privacy of all individuals and confidentiality of personal data and handle Personal Data with utmost care and take measures to promote the appropriate handling of personal data. |
| 2-6 Company Assets | We do not improperly use company assets for our own personal benefit. |
3 Our Workplace
| 3-1 Human Rights & Fair Employment Practices | We are committed to fostering a workplace that is respectful, inclusive and safe by promoting human rights and diversity and complying with all laws and regulations pertaining to labor practices, freedom of association, collective bargaining, and immigration. We also do not engage in discrimination or support forced labor, debt labor, child labor or any other form of modern slavery. |
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| 3-2 Workplace Free of Harassment | We do not allow any form of harassment and are committed to creating and safeguarding an environment where every person feels respected and valued, and where everyone is treated equally and fairly. |
4 Responsibilities to the Publi
| 4-1 Environmental Preservation | We are committed to upholding laws and regulations related to environmental protection and conservation, and conduct business activities while maintaining harmony with the global environment. |
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| 4-2 Corporate Social Contribution | We strive to build solid, trustworthy relationships with community members to help develop local communities and resolve social issues at the global level through various activities. |
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 Rights | We respect the character and individuality of each person and strive to create work environments without any infringement of human rights. |
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| Diverse Workforce | We 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 Development | We believe that each employee is the source of value creation and support the development of skills by employees. |
| Employee Assessment and Treatment | We 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 Health | We 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 Balance | We 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 First | Based 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. |
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| Pursuit of Safe Technologies | With 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 Responsibility | All 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 Compliance | We 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 Society | Based 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 Focus | Focusing on quality to satisfy customers, meet production schedules, and reduce required maintenance even with temporary cost increases. |
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| Quality Design and Assurance | Building quality into products and assure in-process quality control, from the design and development phase throughout every process. |
| Quality and Trust | When a quality-related problem occurs, working as a team to perform thorough root cause analysis and resolve problems as quickly as possible. |
| Continual Improvement | Ensuring customer satisfaction and trust by establishing quality goals and performance indicators and by implementing continual improvement using the PDCA cycle. |
| Stakeholder Communication | Listening 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 Improvement | We establish environmental goals and continual improvement of the environmental management system to enhance environmental performance throughout our product lifecycle. |
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| Compliance with Applicable Laws | We continually enhance our knowledge of environmental issues to not only comply with applicable laws, but also set additional voluntary standards. |
| Environmental Contribution with Product | We 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 Preservation | We 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 Society | We actively promote collaboration and cooperation with all our stakeholders to achieve mutual understanding and conformance to expectations. |
Revision:July 1, 2016
Procurement Policy
The high-value manufacturing that the Tokyo Electron Group strives for is based on the functions of all materials and components that make up the products and the pursuit of high quality. We value communications with suppliers and seek to grow manufacturing on a global scale with our suppliers based on ongoing trusting relationships.
| 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 |
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| 2. Priority on the Environment | We conduct procurement with full consideration for reduction of environmental impact and protection of the global environment. |
| 3. Fair Business Practices | We continuously seek high-value technologies and create broad opportunities for their business transactions based on the precondition of open competition. |
| 4. Partnership | We prioritize relationships of trust based on mutual understanding with suppliers and conduct activities in the pursuit of mutual continuous growth. |
| 5. Information Management | We 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. |
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| 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. |
