Texas Instruments

2012 Corporate Citizenship Report

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2012 performance

Responding to regulations | Asset protection | Natural disasters | Crisis communications | Looking ahead

TI prepared for and successfully addressed several new business challenges in 2012.

Responding to regulations

To ensure compliance with regulations and uninterrupted business operations, TI continued to comply with:

  • Conflict minerals legislation, which seeks to eliminate the sourcing of certain metals from the Democratic Republic of Congo.
  • The California Transparency in Supply Chains Act, which seeks to eradicate human trafficking in supply chains.
  • The U.S. Environmental Protection Agency's mandatory greenhouse gas (GHG) reporting rule and GHG permitting rule.
  • Ongoing updates to Regulation on Registration, Evaluation, Authorization and Restriction of Chemicals and China Management Methods for Controlling Pollution by Electronic Information Products regulations.

Asset protection

To secure our human, physical and intellectual assets in 2012, we:
  • Established a Business Continuity steering team to set a strategic direction and alignment with business-continuity objectives, including operational effectiveness for large-scale events.
  • Analyzed and expanded alternate sourcing and inventory strategies across our supply chains to ensure preparedness for unexpected events.
  • Thoroughly assessed 2011 natural disasters - an earthquake and tsunami in Japan and heavy flooding in Taiwan - to identify lessons learned.
  • Continued conducting IT security compliance reviews at each major site worldwide, including National Semiconductor's former manufacturing facilities, acquired in late 2011.
  • Installed new technology and solutions that further protect our information technology and intellectual property, and that monitor and report the movement of confidential information.
  • Improved business-continuity program elements and capabilities, and aligned planning and management activities with former National Semiconductor sites.
  • Continued strengthening our security standards and protocols by developing precious metals security standards and a physical access control standard. These provide consistent, efficient and auditable controls at all TI sites to secure assets.
  • Promptly responded to customer requests regarding business-continuity information.
  • Effectively managed employees' use of smartphones/devices by establishing restrictions and requirements to protect intellectual property and privacy.
  • Established a Central Privacy Committee that will oversee the personal data of our employees, customers and business partners.

Natural disasters

While TI experienced a few weather-related events in 2012, none greatly impacted its operations.

Crisis communications

To ensure preparedness, we:
  • Updated our crisis manual to include key public information officials with fire and police departments in major cities where we operate.
  • Held emergency response/crisis communications training at former National Semiconductor sites in Scotland, Malaysia and California to train employees on our crisis manual, policies and communications approach.
  • Successfully deployed a communications plan in advance of Typhoon Saola in Taiwan.

Looking ahead

In 2013, TI plans to continue refining and improving its business-continuity program to aggressively manage potential impacts to its business and customers. We will do this in part by:
  • Continuing to assess suppliers' business-continuity programs, including second- and third-tier suppliers.
  • Focusing business-continuity planning readiness in high-growth locations, such as India and China.
  • Training our workforce on security expectations and policies.
  • Installing new technology and solutions to further protect information technology and intellectual property. We also will strengthen software security controls and restrict access to the internal network based on user roles.
  • Staffing emergency response teams at former National Semiconductor sites. We also plan to expand the capabilities of our worldwide emergency communications system.
  • Helping customers mitigate disruption risks by identifying alternative sources for their critical materials.
  • Building relationships with public information officials to ensure effective communications during unforeseen events.
  • Improving our capability to quickly recover large amounts of critical data using new technology and procedures.