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Ethics

NXP's commitment to the highest standards of ethics and integrity helps us earn the continued confidence of our team members, investors, customers, vendors and communities.

Overview
SpeakUp
Ethics Committee, Management, Allegations and Approach
Training
Reporting
Ethics Program

Overview

We aim to compete and operate in an ethical and lawful manner, comply with applicable national and international laws and regulations, practice transparency, maintain accurate business records and never engage in bribery or corruption or insider trading.

Highest Standards of Ethical Conduct

NXP’s Code of Conduct (the Code) sets out the principles that guide us as we work to fulfill our ambitions as a responsible and ethical company. It serves as a framework and details the behavior expected from every team member, director, contractor or anyone else who works on behalf of NXP. The Code is available in 12 languages.

The Code addresses business and personal integrity, use of company assets, employment at NXP and external activities, and provides guidance on reporting potential violations. The Code was last revised in 2021. To incorporate the Code into our way of working, we train our team members on the principles of the Code.

SpeakUp

We are committed to promoting a culture of integrity and encourage our team members, as well as external business partners and third parties, to express any concerns they have related to potential violations of the Code, NXP policies or the law.

Concerns and Grievances

Concerns and grievances can be confidentially lodged using various reporting channels, such as management, ethics liaisons or the NXP Ethics Committee. There are dedicated ethics liaisons regionally and in each country. Concerns and grievances can also be submitted using the phone or web option of SpeakUp , which is a system, hosted by an independent third party, that facilitates anonymous reporting. Team members are encouraged to report potential violations of our Code using any of our reporting channels.

Ethics Committee, Management, Allegations and Approach

Ethics Committee

The NXP Ethics Committee reviews reports and grievances and oversees investigations into alleged violations of the Code. The Ethics Committee consists of five senior leaders from Legal, Internal Audit, Human Resources and Sustainability. Members are based in the Americas, Europe and Asia-Pacific regions. The Ethics Committee meets bi-weekly to discuss all reports received and to monitor the progress of ongoing investigations.

Management

The Ethics Committee reports quarterly to the General Counsel, the Chief Financial Officer, the Chief Human Resources Officer and the Audit Committee of the Board regarding allegations and investigations that are in progress or completed.

Allegations

All reports are assessed and discussed by the NXP Ethics Committee. After the initial assessment of a report, an investigation team is appointed with the right expertise and skill set to conduct an in-depth investigation. While it is difficult to set a fixed timetable for resolution, since complaints vary in scale and complexity, most can be dealt with in under two months.

Approach

Based on the findings of the investigation, a decision is made about whether the report can be substantiated. If so, we take appropriate follow-up actions. These actions can include education, organizational changes, counseling, reprimand, suspension, and/or termination, depending on the nature and severity of the finding and the party’s willingness and ability to rectify the issue.

Ethics Training

In November 2023, the annual online Code of Conduct training was rolled out to our team members, including employees, contractors and temporary workers. The training was offered in 11 languages and focused on NXP values and expectations as set forth in the Code. The topics of the Code of Conduct training vary every year and the 2023 training addressed several topics, including anti-bribery and anti-corruption, (sexual) harassment, conflicts of interest, security and protection of NXP (confidential) information and speaking up in NXP.

NXP's goal is 100% completion by all enrolled individuals. In 2023, we achieved a completion rate of 96%. Since the training window opened at end of Q4 and the due date was at the end of December, 2023, we did not reach our 100% completion rate by the end of 2023. In 2024, as we continue to work toward a 100% completion rate, we will determine whether those who did not yet complete the training should be given an exemption, due to long-term leave of absence because of sick leave, parental leave or other extenuating circumstances.

2023 Ethics Reporting Results

We monitor, assess and track our compliance performance and report progress on a quarterly basis.

Reports Received by the Ethics Committee

In 2023, 133 reports were opened and received by the Ethics Committee. Of these reports, 49% were substantiated and 93% were closed.

Most Reported Violations

The most-reported types of violations over 2023 included violations of internal policies, theft and harassment.

Enhancing our Ethics Program

In 2023, we published a standalone Anti-Bribery and Corruption Policy. Ethics and compliance topics were also included in the fourth cycle of our Winning Culture Survey. We had a favorability rating of 95% for a question related to NXP’s commitment on ethical business practices, which was the highest scoring question on the survey. This question scored more positively than the 75th percentile benchmark, composed of companies operating in the technology sector.

Contact Us

Email:
NXP Ethics Committee: code.compliance@nxp.com

Phone:
SpeakUp

Mail:
NXP Legal and Compliance Counsel
NXP Semiconductors
High Tech Campus 60
5656AG Eindhoven
The Netherlands