| Description |
Report |
2008 response |
| Profile |
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2006 |
2007 |
2008 |
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| 4.0 |
Governance, commitments, and engagement |
Governance |
| PRO4.1 |
Governance structure of the organization
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Composition of board and commitments, board committees, and leadership provide details on organization structure and committee membership.
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| PRO4.2 |
Chair of the board |
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Rich Templeton is TI's chairman and chief executive officer. The board has no fixed policy on whether the roles of chairman and CEO should be separated or whether there should be an independent chairman. Instead, the board determines the leadership structure that serves the company best at any given time. The board chose its current structure and practices to facilitate oversight of management and to fully engage all independent directors. See TI's 2009 proxy statement for more detail. |
| PRO4.3 |
Number of board members |
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We have 11 directors, 10 of whom meet TI's independence guidelines, which comply with New York Stock Exchange listing standards.
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| PRO4.4 |
Mechanism for shareholders and employees to provide recommendations or direction to the board
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Communications with the board. |
| PRO4.5 |
Linkage between compensation for board members, senior managers and executives, and the organization's performance
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We recognize exceptional social and environmental performance at both the site level and individual team levels. An overview of how director and executive compensation is linked to performance is available in TI's 2009 Proxy Statement.
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| PRO4.6 |
Processes in place for the board to ensure conflicts of interest are avoided
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The director independence guidelines and the audit committee charter provide information on relevant processes.
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| PRO4.7 |
Process for determining the qualifications and expertise of board members for guiding the organization's strategy on economic, environmental and social topics
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Composition of board and commitments. |
| PRO4.8 |
Internally developed statements of mission or values, codes of conduct and principles relevant to economic, environmental, and social performance and the status of their implementation
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Every employee and contractor worldwide is responsible for upholding and adhering to TI's Code of Business Conduct, Values and Ethics of TI, and Business Practices Statement. Suppliers are expected to adhere to our ethical values as well.
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| PRO4.9 |
Board procedures for overseeing the organization's identification and management of economic, environmental, and social performance
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The audit committee oversees compliance with TI's code of conduct and the governance stockholder relations committee has a broad charter that encompasses a variety of issues, including environmental performance.
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| PRO4.10 |
Processes for evaluating the board's own performance, particularly with respect to environmental and social performance
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The annual performance evaluation provides information on evaluating the board's own performance but is not specific to social or environmental performance.
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Commitments to external initiatives |
| PRO4.11 |
Explanation of how precautionary principle is addressed by the organization
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TI applies the precautionary principle to many aspects of our operations, including our approach to climate change and business continuity, a program designed to mitigate events, and reduce impacts as well as production interruptions. In addition, our aggressive chemical and material screening process assures we do not use materials whose hazards are not understood and controlled.
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| PRO4.12 |
Externally developed, voluntary economic, environmental, and social charters, sets of principles or other initiatives to which the organization subscribes or endorses
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TI subscribes to few external charters, including the U.S. Green Building Council's LEED® Green Building Rating System, a voluntary, consensus-based national rating system for developing high-performance, sustainable buildings.
We believe that the basic intent of various proposed social and environmental standards provides a useful reference point for companies to evaluate their own conduct and standards. Although we are very much in favor of companies operating responsibly, we do not advocate any exclusive set of standards over another. Our history and experience in this area have established a firm foundation of values and ethics that cover the same broad concerns that are addressed by these various evolving codes. TI's own governance documents are available for review.
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| PRO4.13 |
Significant memberships in associations
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A few of the organizations in which TI participates, includes trade associations. We also collaborate with universities, associations and leading high-tech companies to drive technological innovations that benefit people and the environment.
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Stakeholder engagement |
| PRO4.14 |
List of stakeholder groups engaged by the organization
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Key stakeholders we engage include employees, customers and shareholders as well as site communities, public officials, trade associations, regulatory agencies, media, analysts, suppliers, contractors, retirees and potential employees.
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| PRO4.15 |
Basis for identification and selection of stakeholders with whom to engage
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We engage with stakeholders that directly influence or have stake in our operations.
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| PRO4.16 |
Approaches to stakeholder engagement
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We regularly engage with stakeholders, including employees and our greater community through a variety of traditional and social media as well as personal interactions. We continously seek new ways to better reach and listen to each stakeholder group.
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| PRO4.17 |
Key topics and concerns raised through stakeholder engagement
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Through informal engagement with employees, customers, shareholders and analysts, among other key stakeholders in 2008, we learned that top questions and concerns included energy use, water consumption and company response to climate change.
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