[ Nippon Keidanren ] [ Policy ] [ CSR ]

Outline of the Implementation Guidance (Version 5)
for Charter of Corporate Behavior

[Tentative translation]
April 17, 2007
Nippon Keidanren

The following items supplementing each principle illustrate the activities believed necessary for member corporations (hereafter referred to as "Members") to put the spirit of the Charter of Corporate Behavior voluntarily into practice.

1. Members, by the development and provision of socially beneficial goods and services in a safe and responsible manner, shall strive to earn the confidence of their consumers and customers, while taking necessary measures to protect personal data and customer related information.

  1. 1-1 Develop and provide socially beneficial products and services to meet the needs of consumers and customers.
  2. 1-2 Ensure the safety and quality of its products and services.
  3. 1-3 Provide consumers and customers with appropriate and useful information about its products and services.
  4. 1-4 Communicate with consumers and customers in good faith.
  5. 1-5 Protect personal data and customer-related information in a proper manner.

2. Members shall promote fair, transparent, free competition and sound trade. They shall also ensure that their relationships and contacts with government agencies and political bodies are of a sound and proper nature.

  1. 2-1 Make thorough efforts to comply with the Antimonopoly Act in its domestic and overseas operations.
  2. 2-2 Establish sound procurement policies.
  3. 2-3 Respect the intellectual property of others in addition to creating, protecting and making full use of its own intellectual property rights.
  4. 2-4 Establish an export-control system in accordance with applicable laws.
  5. 2-5 Never engage in illegal or corrupt practices, such as offering entertainment, bribes, or other benefits to government agencies and political bodies, to earn unfair profits or to receive favorable treatment.
  6. 2-6 Develop more transparent relationships with political bodies and government agencies, and support efforts to make a more policy-oriented political system.

3. Members shall engage in communication not only with shareholders but also with members of society at large, including active and fair disclosure of corporate information.

  1. 3-1 Strive to promote communication with shareholders and investors through shareholder meetings and investor-relations activities.
  2. 3-2 Make efforts to prevent the occurrence of insider trading.
  3. 3-3 Disclose corporate information to stakeholders in an appropriate and timely manner.
  4. 3-4 Promote two-way communication with society through public relations and community-relations activities.

4. Members shall strive to respect diversity, individuality and differences of their employees, to promote safe and comfortable workplaces, and to ensure the mental and physical well-being of their employees.

  1. 4-1 Introduce personnel management and human resources development systems to foster a balance in work and life and enable any of diversified workforce to fully exercise his or her ability.
  2. 4-2 Promote non-discrimination and equal opportunity in employment and promotion.
  3. 4-3 Take steps to prevent industrial accidents and give assistance to employee health programs.
  4. 4-4 Respect the individuality of its employees, and support their efforts to develop skills and careers.
  5. 4-5 Engage in dialogue and consultation with its employees and their representatives in good faith.
  6. 4-6 Not accept child labor nor forced labor.

5. Members shall recognize that a positive involvement in environmental issues is a priority for all humanity and is an essential part of their activities and their very existence as a corporation, and shall therefore approach these issues more proactively.

  1. 5-1 Strive to contribute to the resolution of global warming, and to build a recycling-based society.
  2. 5-2 Make efforts to cooperate with foreign countries to transfer energy-saving and environment conservation technologies.
  3. 5-3 Strive to reduce adverse effects and risks to the environment by assessing the impact of its business activities.
  4. 5-4 Develop innovative technologies, products, services, and business models that contribute to the resolution of environmental issues.
  5. 5-5 Promote measures and activities aimed at the conservation of nature, including protection of biological diversity.
  6. 5-6 Publicize extensively its policy and achievements on environmental issues.

6. As "good corporate citizens," members shall actively engage in philanthropic activities, and other activities of social benefit.

  1. 6-1 Contribute to the resolution of targeted social issues, through the investment of its resources and expertise.
  2. 6-2 Cooperate with non-profit and non-governmental organizations (NPOs and NGOs), members of local communities, and other partners.
  3. 6-3 Consider taking part in collaborative work initiated by industrial associations and the business community.
  4. 6-4 Support its employees' efforts to contribute to volunteer activities.

7. Members shall reject all contacts with organizations involved in activities in violation of the law or accepted standards of responsible social behavior.

  1. 7-1 Adopt and clearly follow a principle to exclude antisocial elements such as organized crime from any business activities.
  2. 7-2 Act according to the law through companywide efforts to forestall any damage from antisocial elements.
  3. 7-3 Collaborate with relevant organizations and take measures to banish antisocial elements.

8. Members shall observe laws and regulations applying to their overseas activities and respect the culture and customs of other nations and strive to manage their overseas activities in such a way as to promote and contribute to the development of local communities.

  1. 8-1 Ensure that employees comply with the code of conduct based on the international rules, as well as local laws and regulations.
  2. 8-2 Respect local customs and cultures and run business through relationships based on mutual trust and partnership.
  3. 8-3 Promote management localization of overseas operations.
  4. 8-4 Pay attention to local partners' progress on measures to fulfill their social responsibilities. If necessary, support their efforts to enhance implementation.
  5. 8-5 Do not engage in illegal or corrupt practices such as the entertainment or bribery of foreign government officials to make unjust profits or to gain favorable treatment.

9. Top management of members shall assume the responsibility for implementing this charter and for taking all necessary action in order to raise awareness in their corporation and inform their group companies and business partners of their responsibility. To management shall also heed the voice of their stakeholders, both internally and externally, and promote the development and implementation of systems that will contribute to the achievement of business ethics.

  1. 9-1 Top management should exert leadership in establishing clear management philosophies and policies, and a clear code of conduct for doing business, as well as in enforcing management directions thoroughly in their corporation.
  2. 9-2 Top management should make public the basic business principles on its management philosophies, policies, and code of conduct. They should also disclose the methods for achieving their goals.
  3. 9-3 Top member should promote an effective company-wide system for implementing its basic business principles.
  4. 9-4 Top member should establish independent help lines (counseling offices) in charge of business ethics issues that are separated in structure from the line of management.
  5. 9-5 Top management should strive to provide and enhance education and training in business ethics.
  6. 9-6 Top management should review and evaluate adherence to its code of business ethics.

10. In the case of incidents contrary to the principles of this charter, top management of members must investigate the cause for the incident, develop reforms to prevent recurrence, and make information publicly available regarding their intended actions for reform. After the prompt public disclosure of information regarding the incident, responsibility for the event and its effects should be clarified and disciplinary action should be taken, including the highest levels of management where necessary.

  1. 10-1 Top management should, from the day-to-day perspective of crisis management, establish an internal management system to prevent misconduct from occurring.
  2. 10-2 Top management, in case any misconduct occurs, should promptly clarify the facts relating to the incidence, investigate the causes, formulate responsible and appropriate policies, and take proper actions.
  3. 10-3 Top management should take immediate action to explain to the public facts, policies to cope with the issue, and measures to prevent the recurrence of the incident.
Note: The original Japanese language version of this document is the official version.

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