Risks | Opportunities | Goals | Awards | Governance | Policies and principles | Training and awareness | Performance monitoring
Texas Instruments is in the business of engineering a better tomorrow. We design and manufacture analog and embedded processing semiconductors that help more than 100,000 customers transform the future. To sustain our growth and success as a business, it is critical for us to:
- Be accountable for our social, environmental and economic impact around the world.
- Invest significantly in R&D.
- Drive innovation and help transform science, technology, engineering and math (STEM) education.
- Create a workplace where the world's brightest minds engage passionately in their work.
- Maintain efficient, consistent and cost-effective business operations.
- Source materials from quality, ethical and responsible suppliers.
We built TI through innovation and we continue that tradition by shaping the future of electronics through our people and products. In 2013, we completed a number of initiatives designed to strengthen the company now and in the future. For example, we:
- Invested $1.5 billion in R&D; forged new university relationships in the U.S. and abroad; and advanced medical, automotive safety and energy-efficient technologies.
- Began using the Electronic Industry Citizenship Coalition's (EICC) Code of Conduct as a source of guidance, which was designed to ensure worker safety and fairness, environmental responsibility, and business efficiency - both within TI and across our supply chain.
- Developed a Supplier Code of Conduct and began requiring suppliers to complete EICC assessment questionnaires.
- Continued focusing on efficiency and conscientious manufacturing to drive down the costs of semiconductor technologies and make environmentally responsible products accessible to more people globally.
- Updated our business continuity policy to further strengthen planning, response and recovery efforts globally.
- Granted $7 million to support education programs through TI and its philanthropic arms as well as $26 million to support university programs in 2013.
Additionally, TI continued to be conscientious about growing responsibly. We invested in strategic energy- and water-conservation projects that saved $10.2 million; recycled 92.3 percent of our waste; expanded participation in our employee commuting and biking programs; and reused or recycled 2 billion gallons of water.
TI's most recent annual U.S. Securities and Exchange Commission (SEC) filing (SEC Form 10-K) outlines the risk factors that could impact financial results. These include:
- Severe weather and geological events.
- Changes in environmental, safety and health regulations.
- The availability of raw materials and supplier services.
- The recruitment and retention of qualified labor.
TI is well-positioned to continue growing market share and deliver long-term financial returns. Our analog and embedded processing technologies enable diverse applications, including but not limited to efficient power use and renewable energy, as well as a host of applications that provide social and environmental benefits.
Currently, we are pursuing new business opportunities with our energy and infrastructure, power-management, automotive, health and fitness, and industrial technologies. These innovations are helping to improve product safety, reliability and efficiency.
Additionally, we will:
- Continue adopting and using tools to align and adopt best sustainability and citizenship practices and processes within our industry, and encouraging our suppliers to do the same.
- Further strengthen business continuity planning, response and recovery efforts globally by working toward implementing the ISO 22301 international business continuity management standard by 2016.
- Use industry-endorsed tools and methodologies that have already improved social and environmental performance, both internally and throughout our supply chain.
To drive sustainable progress within our own company, we set both annual and multiyear goals.
TI continued to be recognized in 2013 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 11th year.
- Ethisphere Institute, which named TI one of its "World's Most Ethical Companies" for the seventh consecutive year.
- Fortune Magazine, which recognized TI among its "World's Most Admired Companies" (No. 2 in semiconductors) for the 10th consecutive year.
- New York Stock Exchange Euronext Vigeo, for being among the 50 most advanced U.S. companies for corporate responsibility.
- Thomson Reuters, which included TI as a component of its Corporate Responsibility Indices.
TI designed its governance structure to facilitate company decision-making and accountability, and its leaders are responsible for supporting and driving ethical business practices globally.
The Governance and Stockholder Relations Committee of TI's board of directors monitors stakeholder sentiment. Committee members review presentations on governance practices, stockholder activity, key citizenship investments and outcomes, and TI's political action committee expenditures.
Policies and principles
TI's citizenship policy and principles serve as a reference point for both educating employees and driving improved performance. Expectations of our suppliers and policies that guide our environmental and employee practices are outlined in our citizenship website.
Training and awareness
We provide extensive support and training to help employees worldwide maintain compliance with both internal and external guidelines and laws. This includes specialized training in areas such as:
- The EICC Code of Conduct.
- TI's Code of Business Conduct.
- TI's Supplier Code of Conduct.
- Environmental, safety and health.
- Fraud awareness.
- Confidential information protection.
- The Foreign Corrupt Practices Act.
- International trade compliance.
- Preventing workplace harassment.
TI's global management systems are designed to consistently assess and monitor performance, drive plans for continuous improvement, maintain compliance, and ensure that required activities are completed in a timely manner.
Additionally, we engage with the Semiconductor Industry Association, World Semiconductor Council, EICC and other associations to collectively benchmark best practices and address mutual challenges, such as sourcing conflict-free minerals and responding to legislation.