Texas Instruments

2012 Corporate Citizenship Report

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2012 performance

Leadership | Ethics and compliance | Results | Looking ahead


TI's board of directors, through the activities of the Governance and Stockholder Relations Committee, maintained their diligence in monitoring stakeholder sentiment, reviewing the board's governance practices and guidelines, and making improvements where needed.

Company leaders continued discussions with our largest stockholders regarding our governance and executive compensation structure. These dialogues will continue in 2013 in an effort to strengthen engagement with shareholders and convey strategic company information.

Ethics and compliance

TI's board of directors monitored financial reform legislation, specifically the requirements and implications of the Dodd-Frank Wall Street Reform and Consumer Protection Act, in 2012.

TI formally became a member of the Electronic Industry Citizenship Coalition (EICC), which has a specific code of conduct to ensure worker safety and fairness, environmental responsibility, and business efficiency in the electronics industry.

We had 15 of our own 19 manufacturing sites (79 percent) complete ethics and human rights compliance self-assessments in accordance with EICC protocols. Their evaluations found no significant compliance gaps.

Additionally, TI adopted a new Protection of Personal Data policy to build on its commitment to protecting confidential personal information across a multinational workplace with potentially divergent understandings of privacy. The policy reflects our principles for collecting, using, storing or transferring personal data in a way that earns the continued trust of employees, customers and business partners globally.

Our Protection of Personal Data policy does not replace TI's existing Confidential Information Protection policy, which safeguards trade secrets and those of its customers and suppliers.

To help employees maintain compliance with both TI and external guidelines and laws, we continued providing extensive training globally. We offered specialized courses in multiple languages on such topics as confidential information protection, TI's code of business conduct and workplace harassment.


In 2012, TI:
  • Experienced no material incidents and received no material fines due to noncompliance with environmental, labor or human rights laws.
  • Received no substantiated allegations of illegal bribery or corruption.
  • Provided ethics and compliance awareness training to all employees; 98.7 percent completed the training.
  • Responded to 426 inquiries received through the Ethics Office and accounting audit hotline. Many did not relate specifically to ethics issues, but were instead questions related to (for example) employment or customer support. Inquiries that were ethics-related were resolved by the Ethics Office or forwarded to the appropriate operation for handling. None of the inquiries or contacts presented an accounting issue or appeared to pose a material financial risk.
  • Continued to be recognized as a leader in responsible and ethical business practices by:
    • Corporate Responsibility Magazine, which named TI one of the "100 Best Corporate Citizens" for the 10th year.
    • Ethisphere Institute, which named TI one of its "World's Most Ethical Companies" for the sixth consecutive year.
    • Fortune Magazine, which recognized TI among its "World's Most Admired Companies" (No. 2 in semiconductors) for the ninth consecutive year.

Ethics office inquiries and contacts

Looking ahead

In 2013, TI plans to:
  • Adopt the EICC's code of conduct and closely manage tier-1 suppliers by establishing more rigorous compliance standards in accordance with the code. Adopting these standards will help vendors improve their environmental and social-responsibility performance. We will also:
    • Change how we identify and audit high-risk suppliers to align with EICC protocols.
    • Update our business practices statement to fully conform to EICC standards.
    • Train customer-facing and procurement employees on the EICC's code.
  • Train all employees worldwide on TI's code of business conduct and how to prevent workplace harassment. We will also continue to train all salaried employees on preventing workplace harassment and confidential information protection.