Governance

In September 2002, we established a compliance committee and established fourteen items under our compliance program, which have governed our actions ever since. Under the mandate of group compliance management, we monitor the status of compliance conformance every six months and extend compliance to domestic and overseas group companies, thereby ensuring thorough compliance even from employees of group companies. The realm of corporate endeavor includes shareholders, customers, suppliers, consumers, employees, and other types of stakeholders. To address the interests and demands of these stakeholders, a company must both pursue profit and engage in sound corporate activities that ensure the survival and continuation of its business. Basic policies for compliance are established at the start of all activities, with measures followed to avoid any deviation from these principles. More specifically, we are aggressively attempting to prevent bid rigging, pricing cartels and other violations of antimonopoly laws, and to strengthen anticorruption measures through bans on offering illegal profits to public servants and persons in corresponding positions (reflecting the recent global trend toward tougher crackdowns on bribery). Strict security trade controls are established to lawfully, safely and smoothly maintain trade operations, which is a vital pillar of sales activities.