Tata Kelola Perusahaan

In any corporate activities, we 1) comply with relevant laws and regulations as well as company regulations and rules including this Code of Conduct, and 2) act in a way not to deviate from our corporate ethics and social norms while keeping in mind our corporate social responsibility.

• (1)
  In developing products, we contribute to people’s living and to building society by providing truly valuable products in a timely manner through creative product development which takes into account not only evident needs of our customers and/or society, but also latent needs of the next generation.
• (2)
  With respect to inventions, ideas, and designs created through KCM Group’s research and development, we 1) disclose them to the public upon taking necessary procedures such as patent application according to the provisions of the law and based on the KCM Group’s strategy, and 2) protect them by obtaining appropriate rights. Furthermore, we contribute to the promotion of technological innovation for the entire industrial world by actively utilizing such inventions, ideas, and designs.
• (3)
  In carrying out development and production of our products, we keep in mind environmental preservation and contribute to the creation of a circular society by putting effort into resource saving, energy saving, recyclability improvement, and waste and hazardous substance reduction while complying with relevant laws and regulations.

• (1)
  With our exhaustive quality control based on KCM’s quality standards and under the slogan of “Made by Kobelco”, we provide our customers with reliable, high-quality products no matter what country they are manufactured in. Additionally, we ensure quality compliance such as proper management of quality data.
• (2)
  We establish a truly valuable service framework which allows for prompt and steady implementation of our services, with an emphasis on the following three elements: response speed, smooth supply of parts, and communication with our customers.
  If there is any situation which might cause trouble to our customers due to product malfunction or lack of care for safety, we will not only put effort into minimizing the damage by cooperating with relevant parties both inside and outside the company and swiftly taking appropriate measures, but also do our best to prevent recurrence.

• (1)
  Relationship with Customers and Clients including Dealers and Designated Service Shops
  When engaging in business operations, we comply with the competition laws of relevant countries, and we neither try to manipulate markets arbitrarily through fraudulent means such as private monopoly or cartels nor engage in any act in violation of the laws and/or regulations such as restriction of price and/or quantity for certain clients or making of fictitious transactions.
  We refrain from providing gifts and/or business entertainment to our customers or clients so as not to go beyond the boundaries of sales promotion in terms of social norm and global conventional wisdom.
  We do not engage in any act, such as false information or fraudulent advertisement for sales activities, which may undermine the trust of our customers.
• (2)
  Relationship with Suppliers
  When procuring materials and/or services, we provide all clients with fair opportunity and determine suppliers and prices in a fair manner through appropriate negotiation. When engaging in procurement operations, we neither demand personal gains and/or favors from our clients taking advantage of our position, nor engage in any similar acts suspected as such.
• (3)
  Relationship with Shareholders
  We put effort into stabilizing our businesses and maximizing our revenue from a long-term perspective, and we disclose KCM Group’s business activities and company information actively and in a fair, equitable, and timely manner based on relevant laws and regulations.
  We do not buy and/or sell shares or trade securities using insider information of KCM, affiliate companies, or clients obtained in the course of work or dealings.

• (1)
  Each one of our officers and employees are aware that they play some part in our publicity activities. We put effort into earning the trust of society by accurately conveying the KCM Group’s corporate philosophy and business information and will continue to humbly accept opinions and requests from society and reflect them in our business activities.
• (2)
  We respect human rights in any business activities we do and we never discriminate based on race, gender, occupation, age, nationality, social standing, religion, physical disability, language, place of birth, or sexuality (such as LGBT and other sexual minorities).
• (3)
  We act in good faith and with sincerity based on a high level of ethics at all times, and we never engage in any antisocial acts or acts which may undermine our reputation or people’s confidence in us. Additionally, we will not have any relationship with antisocial forces/groups.
• (4)
  In order to build a company the existence of which is essential in society, we actively implement CSR activities, endeavor to make contributions to local communities and co-exist with local residents, and put effort into building a better future with our employees.
• (5)
  We recognize that highly reliable financial reports are essential in earning the trust of stakeholders, and we ensure proper recording and reporting of financial affairs, tax affairs, and accounting in accordance with relevant laws and regulations, applicable accounting standards, and our company rules. Furthermore, we will develop a framework and systems for ensuring reliability.

• (1)
  We put the highest priority on ensuring the safety and health of our employees in all business activities as well as all processes from development to manufacturing to sales to services. We remain prepared for situations such as disasters, terrorism, and riot which may pose a danger to the bodies and lives of our employees. Furthermore, we minimize damages due to such dangers by remaining prepared for unexpected situations which may pose a threat to the bodies and lives of our employees.
• (2)
  We do not tolerate any defamation or harassment which may undermine people’s dignity. Should any incident occur, we will swiftly conduct an investigation and resolutely take action for the relief for the victim and prevention of recurrence.
• (3)
  In order to improve employees’ awareness of their full participation in business management, we not only promptly and actively communicate all business management information necessary in performing their duty, but also listen to the opinions and thoughts of our employees and reflect them in our business management.
• (4)
  We put effort into nurturing a corporate culture in which our employees can tackle challenges with courage and high aspirations, have strong willpower and passion, and follow through until they succeed. Furthermore, we will build a system which enables us to evaluate employees’ capabilities and performance in a fair manner.
• (5)
  By building a corporate culture which encourages unique and innovative ideas, we ensure the constant creation of unique and exclusive technologies, products, etc. which differentiate us from our competitors, and we continue providing new values to society.
• (6)
  We ensure harmony between work and personal time (i.e. work-life balance) so as to allow each one of our employees not only to fulfill their work responsibilities while working with a sense of fulfillment and finding their work rewarding, but also to choose and build different lifestyles at home and/or in their community depending on the stage of life they are in.

We comply with the laws and regulations regarding our relationship with politics and government, stay away from illegal/unlawful donations and political contributions, engage in business dealings with public servants (or those who are equivalent to public servants) in a strict manner based on relevant laws and without falling into cozy relationships, and we never engage in bribery.

• (1)
  We thoroughly implement systems and organizational management which prevent the divulgence of our confidential information in all business activities, and we gather information from others using legal means.
• (2)
  We promote effective use of advanced information network systems and build efficient information systems both inside and outside the company. We neither steal or alter other people’s information through the misuse of the systems nor abuse the internet, mobile devices, etc. for our personal benefit or interest.
• (3)
  We appropriately manage personal information, comply with relevant laws and regulations when handling it, pay careful and great attention to privacy protection, and manage properly.
• (4)
  For stakeholders with whom the KCM Group has a relationship, we disclose truly valuable information to them in a timely manner based on relevant laws and regulations, and we never engage in unlawful/illegal handling of information obtained from others.

• (1)
  We comply with international rules as a good corporate citizen, respect society, culture, and customs of the countries in which we operate, and contribute to the local development by promoting a shift to locally-managed companies as much as possible.
• (2)
  We implement security export control appropriately, which aims at the maintenance of global peace and safety.

• (1)
  Regardless of whether it is tangible or intangible, we use the company’s assets in an efficient and proper manner, and we manage them appropriately to prevent loss, theft, and unauthorized use.
• (2)
  We set up company equipment which is compliant with the laws and regulations, perform maintenance on them, and manage them appropriately.
• (3)
  According to our business development/expansion in the global competitive environment, we protect intellectual properties, which are created in the course of KCM Group’s business activities, appropriately as our rights based on the legal system in each country, and we use them efficiently and properly and manage them appropriately. Furthermore, we respect the intellectual property rights of third parties as we do with our own rights.

• (1)
  In order to improve our corporate value and improve the efficiency and transparency of our business management, we believe that internal control is an extremely important matter in terms of business management.
  By developing an internal control system based on relevant laws and regulations as part of business management, the KCM Group carries out fair and sound corporate activities in compliance with the laws, regulations, and other social norms, manages various business risks, and runs its business with high efficiency and transparency.
• (2)
  In order to ensure thorough compliance as a company as a whole, continued efforts toward the creation of an environment which enables officers and each one of our employees to act while always keeping compliance in mind is essential. The KCM Group will develop systems necessary for creating such an environment.