Compliance

In order to realize our corporate philosophy of "we will always support leading-edge industries by providing new technologies and products demanded by the times, and are committed to realizing a more prosperous and sustainable future for the people, society and the global environment," and to achieve sustainable growth and create medium- to long-term corporate value, we believe it is important for our directors, officers, and employees to recognize the importance of corporate social responsibility and to act with social common sense in compliance with social rules and regulations, both in Japan and abroad.

The Group has established the Fujibo Group Charter of Conduct to enhance the personal qualities of each employee and officer and to instill a strong sense of discipline within the Company, with the goal of conducting corporate management that ensures not only compliance with laws and regulations, but also adherence to social norms and corporate ethics.
To promote these efforts across the Group, we have selected a Compliance Officer, formed a Compliance Committee, and appointed chiefs of compliance and compliance managers at each business site and factory. Through these measures, we have created an organizational structure centered on the Compliance Committee.
As a whistleblowing body to augment and enhance those functions, a corporate ethics hotline, including an external legal consultation service provided by lawyers, has been established.

In order to conduct sound business activities, not only do we comply with laws and regulations, but also expand the range of subjects and scope to be observed, such as social norms and corporate ethics. In order to prevent anticipated risks associated with business activities, it is important to engage in compliance management and provide education to all employees to raise their compliance awareness. As part of the Fujibo Group's efforts to spread and raise compliance awareness, we make sure that our employees are familiar with the "The Fujibo Group Charter of Conduct" and "Principles of Conduct," and provide opportunities for employees to acquire correct knowledge of relevant laws and regulations (such as the Unfair Competition Prevention Act, Trade Secret Management Guidelines, and compliance with laws and regulations on product quality and labeling). We have also prepared a system in which the Legal Department and other relevant departments work with external experts to respond to possible legal risks, such as compliance violations due to lack of compliance awareness or knowledge. In addition, we strive to spread awareness of compliance by informing employees of revised laws and regulations, such as harassment prevention laws and the Work Style Reform Act, in our internal newsletter each time we respond to internal regulations.

Each business site conducts compliance awareness-raising activities (compliance programs) on a semi-annual basis, and provides compliance education for employees where they learn about important regulatory measures, etc. The results and issues are verified and reported to the Compliance Committee. We provide compliance education for each level of employees, including newly hired employees and those recently promoted to management positions. We also hold study sessions on individual topics such as information security and bribery.

In accordance with the "Corporate Ethics Hotline Operation Procedures," we have established an internal "Corporate Ethics Hotline" as a point of contact for inquiries and concerns about corporate ethics and regulatory compliance. The "Corporate Ethics Hotline" is operated not only in-house, but also in cooperation with external consultation services which include female lawyers. This is done to create an environment in which it is easy for employees to report any concerns, and to handle the consultations and reports fairly and with respect to privacy. In accordance with the Whistleblower Protection Act, we give due consideration so as not to disadvantage not only the callers (whistleblowers), but also those who cooperate with them.

We are also working on a whistleblowing system that is not limited to internal use, but throughout the entire supply chain including the employees of our business partners.

In the event of an incident that may result in a potential compliance violation within the Group, the matter is reported immediately to the relevant department and the Compliance Committee. Following the report of the incident, the Compliance Committee responds immediately by conducting an investigation. If a compliance violation is found as a result, corrective measures and recurrence prevention policies are formulated and implemented not only in the relevant department, but also throughout the Group to thoroughly prevent the recurrence of compliance violation. A system has been established for compliance officers to report serious compliance violations to the Risk Management Committee.

In order to enhance awareness of compliance, we are working on the dissemination and thorough enforcement of the "The Fujibo Group Charter of Conduct", establishing an organizational structure centered on the Compliance Committee and setting semi-annual targets for awareness-raising activities such as priority legal measures to comply with important laws and regulations.

With regards to compliance promotion efforts, each department is required to report to the Compliance Committee on a semi-annual basis, examining the implementation of the compliance program and any problems that have arisen. In addition, the Internal Audit Office conducts multifaceted monitoring, including confirmation of the status of compliance with laws, regulations and internal rules in operational audits; confirmation of the status of development and operation of control to prevent frauds and errors, such as proper segregation of duties and IT control, in internal control assessments on financial reporting; and confirmation of whether the quality audits system, in compliance with quality-related laws and regulations, to prevent any inadequate incidents.