Responding to regulations | Asset protection | Natural disasters | Looking ahead
TI prepared for and successfully addressed several new business challenges in 2011.
Responding to regulations
To ensure compliance with new and emerging regulations and uninterrupted business operations, TI put processes in place related to:
- Emerging conflict minerals legislation, which seeks to eliminate the sourcing of certain metals from the Democrat Republic of Congo.
- The California Transparency and Supply Chains Act, which eradicates human trafficking in the supply chain.
- The U.S. Environmental Protection Agency's mandatory reporting rule and Title V Greenhouse Gas Tailoring Rule.
- Ongoing updates to Regulation on Registration, Evaluation, Authorization and Restriction of Chemicals (REACH) and China Management Methods for Controlling Pollution by Electronic Information Products (China RoHS) regulations.
To secure our human, physical and intellectual assets in 2011, we:
- Launched a supplier risk solutions portal that geographically locates our supplier locations worldwide and assesses the business-continuity preparedness and planning of our supply chain. It allows us to quickly collect information from hundreds of suppliers as part of our ongoing risk-assessment process.
- Received certification for being compliant with the Customs Trade-Partnership Against Terrorism program.
- Conducted security assessments at sites in Malaysia and Singapore.
- Continued strengthening our security standards and protocols.
- Redirected information technology (IT) data to redundant systems to keep critical services running following the March earthquake in Japan. We quickly restored the impacted IT environment to normal operations.
- Continued to conduct ongoing IT security compliance reviews at each major site worldwide.
- Deployed additional technology solutions to systematically identify, monitor and report the movement of confidential information.
In March, Japan's tragic magnitude-9.0 earthquake and subsequent tsunami caused multiple nuclear accidents and left more than 20,000 people dead, injured or missing. TI's Miho and Aizu fabrication sites were both damaged, particularly Miho.
Thanks to TI's robust incident-management and emergency-response programs, support arrived within hours. We used our early notification system and social media to keep local employees apprised as to where they could get help, and updated our global workforce as news came in. Fortunately, no employees were injured or killed in the earthquake, or exposed to radiation from leaks at the Fukushima Daiichi nuclear plant.
TI was one of the first companies to assess and communicate its production and revenue impacts - as well as a recovery timeline - to both customers and investors. The expertise of local teams also helped the company transfer manufacturing to alternative factories across the globe and coordinate needed repairs.
TI's TI Foundation, employees and retirees generously gave $758,348 to the American Red Cross Japan Earthquake and Pacific Tsunami Fund for disaster relief support.
In Taiwan, months of heavy rain flooded almost one-third of the country. While TI does not manufacture in Taiwan, the facility of one of our key suppliers was ruined. Due to safety precautions, government agencies prevented access to the flood zones, which delayed our ability to help recover materials from the site. We found an alternative supplier to fulfill customer orders, but experienced some delays.
In North Texas, we prepared our buildings for potential municipal power outages as extreme winter conditions hit the area. We were fortunate that our energy backup systems sufficed; we did not have to temporarily cease manufacturing at any time during the inclement weather.
In 2012, 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:
Additionally, we plan to appoint a business continuity steering team that will:
- Continuing to assess suppliers' business-continuity programs.
- Developing new security standards, and training our workforce on current security expectations and policies.
- Conducting risk assessments at all former National Semiconductor sites and integrating these into our incident-management program.
- Installing new technology and solutions that will further protect our information technology and intellectual property.
- Modifying our existing incident-management matrix to make it easier to classify events.
- Training our emergency response teams on structural safety.
- Developing additional contingency strategies in case of power outages or drought.
- Orchestrate a collaborative and consistent approach to business-continuity planning.
- Collaborate on lessons learned from 2011 events to limit revenue, reputation and customer impact during large-scale events.
- Align planning and management activities with former National Semiconductor sites.