Governance Initiatives

【Basic Policy】

The basic compliance policy of the company group is as follows.

• As a member of society, the group shall observe compliance, act in accordance with it, and practice sound corporate activities.
• In order to thoroughly implement the basic compliance policy, the group shall strive to continuously improve its company culture and work to prevent fraud and establish a system of responsibility.

【Guideline of Conduct】

The Compliance Guideline of Conduct for the group shall be as follows.

• Respect human rights and do not engage in discrimination or harassment.
• Comply with laws, regulations, and internal rules when executing transactions, and aim to be fair.
• Properly manage the information of the company and affiliated companies, as well as appropriately handle information obtained from outside the company and rights such as intellectual property rights of third parties.
• Make a clear distinction between personal interests and the company's interests, and do not act against the company's interests.
• Record and report financial and accounting matters in a timely and accurate manner, and perform appropriate accounting treatment in accordance with laws and corporate accounting principles.
• Gifts, entertainment, etc. shall not violate laws and regulations, and shall be within a reasonable range according to social conventions.
• Respond resolutely to anti-social forces, do not offer any benefits, and do not trade with them.
• In the event of a violation of the Basic Compliance Policy and Compliance Guideline of Conduct, promptly report and consult with superiors, the Compliance Consultation Desk, or the Whistleblower Desk.

【Basic Policy】

【Basic Purpose】

• The basic purpose of risk management is to protect the safety of society and the stability of the company through the following measures, and to achieve continuous growth of the company.
• Establish a system to anticipate the occurrence of natural disasters, fires, etc., protect human life and property, minimize the impact in the unlikely event that they do occur, and implement a swift and orderly recovery.
• The company will prevent the occurrence of information security incidents/accidents, quality problems, and other events that have a serious impact on society in general and on the business execution of the company, and in the unlikely event that they do occur, it will respond promptly and appropriately to minimize the impact of events.
• In order to achieve the above, the company will appropriately identify, analyze and evaluate risks, select countermeasures against those risks, clarify the systems, responsibilities and authorities and procedures to deal with them, and effectively implement countermeasures.

【Risk Management Objective】

• Continually implement measures to prevent the occurrence of risks that may arise in the development of the company's business, and to minimize the adverse effects on the company and its stakeholders in the unlikely event that the risks materialize. By doing so, the company will respond to the social demands of the company and maintain and increase the corporate value of the company.

【Guideline of Conduct】

• Work to ensure the safety and health of the company's executives, employees and related parties.
• Conserve management resources, and in the unlikely event that management resources are lost, the company will strive for prompt and appropriate recovery.
• Take responsible actions promptly and appropriately when risks become apparent.
• Identify the risks of business opportunities and strive to achieve returns in line with the economic expectations of the company shareholders to the extent feasible.
• Identify business environment risks and work to improve business environment performance to the extent feasible.
• Identify risks related to information security and the realization of products and services, comply with legal, business, and contractual requirements, and aim for the maximum possible return in line with customer satisfaction.
• By identifying and managing financial risks and risks to the reliability of financial reporting, the company will ensure effective and safe fund management and ensure the reliability of financial reporting.
• Through compliance with laws, standards, procedures, etc., the company will act in accordance with social norms based on high corporate ethics and give top priority to compliance.
• Respond to changes in technology and the business environment, and reflect them in risk management through appropriate monitoring, evaluation, examination, and review.
• Enhance the corporate value of the company through continuous risk management activities.

【Promotion System】

• Unless otherwise provided for in the Articles of Incorporation, the Board of Directors makes decisions regarding the company's risk management.
• In order to conduct preliminary research, analysis, and planning, the company has established a Risk Management Committee as an organization that assists the Board of Directors. In order to promote effective risk management, sub-organizations of the Risk Management Committee can be established arbitrarily.