Basic Approach

The JSR Group's approach to corporate ethics and legal compliance is propped by the two central principles of upholding the law and ethical action. Our Corporate Ethics Committee is active in encouraging employees to hold high ethical standards and to act with fairness and integrity.

Corporate Ethics Activities

In April 2005, the JSR Group established the JSR Group Principles on Corporate Ethics to serve as specific guidelines for corporate ethics. In October 2010, the principles were partially revised to reflect the higher standards called for by society and were also made the new global standard for all Group companies. All our Japanese and overseas Group companies take an integrated approach to the promotion of corporate ethics activities.

Three Pillars of Corporate Ethics Activities

(1) Education

Awareness-raising campaigns are held at all Japanese and overseas business sites and various types of training are conducted periodically to raise awareness of the JSR Group Principles on Corporate Ethics.

(2) ?Corporate Ethics Awareness Survey

Every two years, the JSR Group surveys all of its Group employees on corporate ethics, and this helps us understand issues and make improvements in areas related to corporate ethics. The most recent survey was carried out in the autumn of 2009.

(3) Hotline (internal reporting system)

The JSR Group introduced an internal reporting system called the Corporate Ethics Hotline. JSR has long had an internal hotline for communicating with the JSR Corporate Ethics Committee as well as an external line for communicating with an attorney. In September 2008, we concluded a contract with Integrex Inc., a specialist in the field, and added the Integrex Hotline with English and Chinese support to establish a structure that facilitates access by personnel at overseas business sites. We are telling our employees about this hotline via internal newsletters and posters, and also promoting trust in the hotline by safeguarding confidentiality and prohibiting unfair treatment of hotline users.

Legal Compliance Measures

The JSR Group established and put into operation a legal compliance confirmation system in FY2008 (April 1, 2007 to March 31, 2008) to reinforce legal compliance structures. Under the leadership of the Corporate Ethics Committee, the laws and regulations that must be observed in each country are identified and yearly checks on the legal compliance status of JSR and all domestic and overseas Group companies are carried out and any necessary reforms made.

An insider trading prevention seminar

As part of our compliance education program, we held 10 seminars on insider trading prevention for officers and managers at business sites in Japan with a guest lecturer from the TSE-R Compliance Learning Center (COMLEC). Non-managerial employees took an “Introductory Guide to Insider Trading Regulations,” an e-learning course developed by COMLEC. These programs helped increase officers' and employees' knowledge and awareness of insider trading prevention.

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