Texas Instruments

2012 Corporate Citizenship Report

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Standards and expectations

TI standards | Expectations of our suppliers | Supplier environmental and social responsibility policy

TI standards

Our chief financial officer oversees worldwide procurement. In addition, our stringent policies and procedures dictate who has the authority to make purchasing commitments on the company's behalf. We engage and train suppliers to help them understand and adhere to our standards, policies and expectations, which primarily include these listed below:

Expectations of our suppliers

We expect excellence from our suppliers and we require that they achieve and maintain benchmark levels of performance. This includes ensuring that they treat workers with respect and dignity, provide safe working conditions, and use environmentally responsible manufacturing processes. We also expect suppliers to operate in full compliance with the laws and regulations of the countries in which they do business.

Our company is committed to permeating responsible and fair business practices throughout the supply chain, and we expect suppliers to share that commitment. For example, we show preference to suppliers that demonstrate effective environmental and social practices on our evaluation scorecard, CETRAQ.

Our suppliers demonstrate their commitment to us by complying with the TI supplier code of conduct, as well as establishing and implementing social responsibility programs.

Supplier environmental and social responsibility policy

TI expects suppliers to demonstrate their commitment by adhering to the following requirements:

Environmental stewardship

  • Establish an environmental, safety and health (ESH) policy that is approved by the supplier's board of directors, the chief executive officer or equivalent management.
  • Implement a process or system to identify all applicable ESH laws, regulations, rules, ordinances, permits, licenses, approvals, orders, standards and relevant customer requirements, and ensure compliance with them.
  • Implement a process or system to determine and control significant ESH impacts and risks, and demonstrate continual improvement and conservation of natural resources.
  • Implement a process or system to identify potentially hazardous situations and minimize their impact by maintaining and implementing effective emergency response plans.
  • Comply with TI's Control Chemicals and Materials Specification, and with any applicable laws and regulations prohibiting or restricting the use or handling of specific substances. Suppliers should also disclose all chemical and material analytics to TI to help achieve regulatory compliance, and meet TI and customer demands for such information.

Social responsibility

  • Implement a process or system to address accident prevention and make efforts to reduce their injury/illness rate and report results on an annual basis. The injury/illness rate should be less than half of the supplier's industry rate based on the Standard Industrial Classification (SIC) code over the previous 12-months. SIC is a U.S. system for classifying industries by a four-digit code.
  • Comply with the Electronic Industry Citizenship Coalition code of conduct regardless of local business practices or social customs, as it establishes the minimum requirements for doing business with TI.
  • Adhere to all applicable labor and anti-corruption laws, rules and regulations, and establish a policy or standard forbidding the payment/acceptance of bribes or kickbacks, human trafficking and slavery, underage labor, and forced or compulsory labor in the supply chain. Suppliers should enforce this requirement throughout their supply chain.
  • Disclose their sustainability and social responsibility efforts using an internationally recognized reporting framework, such as the Global Reporting Initiative, which includes quantitative metrics on workplace safety, human and worker rights, and environmental compliance.
  • Establish a policy that prohibits the use and/or support of any entity that uses mineral extraction and transport of conflict minerals (tin, tantalum, tungsten and gold) to promote conflict in the Democratic Republic of Congo or surrounding countries.