Governance System

Morito Group Basic CSR Policy

In line with its corporate principle of being “Active and Steadfast,” Morito and its subsidiaries (collectively, the “Morito Group”) must work to build good relationships with customers, suppliers, shareholders, and other diverse stakeholders in the Morito Group.
The Morito Group must commit itself to sustainable growth while fulfilling its corporate social responsibility in the diverse areas of business as well as countries and regions where it operates, so that it can continue growing into the future.
Serving local and global communities will drive sustainable growth of the Morito Group and enable it to fulfill its responsibilities to its stakeholders.
That’s why we have formulated the Morito Group Basic CSR Policy (the “Policy”). We ensure that the Policy is implemented throughout the group so we remain a good corporate citizen.
The Policy is designed for not only the Morito Group but also its business partners. We expect all companies that do business with us to understand its purpose and act in accordance with it.

1Human rights and labor

1. (1) Respect for human rights
   We will respect the human rights of employees and will not subject them to inhumane treatment, including abuse, corporal punishment, and all forms of harassment.
2. (2) Elimination of discrimination
   We will not engage in discrimination or harassment on the basis of race, color, sex, religion, political views, national origin, social background, age, disability, trade union membership, or sexual orientation in any aspect of employment, including recruitment, hiring, compensation, hours of work or rest/paid time off, the filling of specific positions, promotions, and opportunities for training and vocational guidance.
3. (3) Freedom of association
   We will grant all employees the right to form and join a trade union of their choice in accordance with local laws and regulations.
   We will strive to create an environment in which employees can communicate issues that concern them or managers to the management team without fear of retaliation or intimidation, and to address such issues effectively.
4. (4) Prohibition of child labor
   We will not allow persons under the age of 15, the age of completion of compulsory education, or the minimum age for employment as set by national law, whichever is the highest, to engage in labor.
   We will not allow workers under the age of 18 to engage in work that is likely to harm their health, safety, or moral well-being.
5. (5) Prohibition of forced labor
   All employees shall be free to work at will and shall not be forced to work.
   All employees shall have the right to terminate their employment voluntarily and freely. We will not withhold original copies of personal legal documents from employees nor require them to pay a security deposit upon employment or during the hiring process.
6. (6) Adequate wages
   We will pay employees adequate wages in compliance with applicable national laws or at a level not lower than the employment and industrial relations standards observed by similar employers in each country.
7. (7) Working hours
   We will appropriately manage employees’ working hours (including overtime), working days, and holidays in accordance with applicable local law.
8. (8) Occupational health and safety
   We will take appropriate measures to ensure occupational health and safety in our business activities.
9. (9) Prohibition of infringement of rights of local residents, etc.
   We will not impose illegal evictions on local residents or cause significant destruction of local living conditions.

2Ethics and compliance

1. (1) Appropriate human rights due diligence
   We will conduct human rights due diligence as appropriate to the size of our company, nature and context of its operations, as well as the severity of the risk of adverse effects on human rights.
2. (2) Anti-corruption
   We will not engage in bribery or demand undue advantage beyond socially accepted norms, and will strive to establish a transparent and fair relationship with political and administrative organizations.
   In our relationship with our customers, suppliers, and other business partners, we will not engage in any giving or receiving of entertainment or money that exceed the bounds of socially accepted limits to obtain and maintain unfair benefit or privileges.
3. (3) Activities in accordance with competition laws and regulations
   We will comply with competition laws in conducting manufacturing, distribution, and other operations, and will not engage in unfair and anti-competitive transactions, such as hardcore cartels, dumping, unfair subcontracting practices, bid-rigging, or false and misleading advertising.
4. (4) Protection of intellectual property
   We will not infringe the intellectual property rights (patents, copyrights, design rights, etc.) or trade secrets of third parties in conducting procurement, manufacturing and distribution of goods, or other operations.
5. (5) Legal compliance
   We will comply with relevant laws and regulations, including local and international laws, in conducting manufacturing, distribution, and other operations.

3Product liability

1. (1) Compliance with safety standards and legal requirements for products and services
   We will ensure that the goods and services we provide comply with all agreed or legally required standards for consumer health and safety, including those relating to health warnings and safety information.
2. (2) Providing consumers with clear information on products and services
   We will provide accurate, verifiable, and clear information sufficient to enable consumers to make informed decisions about products and services, including pricing, as well as, where appropriate, contents, safe use, environmental characteristics, maintenance, and storage.
3. (3) Prohibition of false or misleading representations
   We will not make any false, misleading, deceptive, or unfair representations, or omissions, or engage in any such practices.
4. (4) Respecting consumer privacy and ensuring security of personal data
   We will respect consumer privacy and take reasonable steps to ensure the security of personal data when collecting, holding, processing, or sharing it.

4Environment

1. (1) Energy conservation
   We will work to reduce energy consumption in our manufacturing, distribution, and other operations.
2. (2) Conservation of biodiversity
   We will not use raw materials derived from endangered plants or animals for which no measures have been taken to preserve or ensure the reproduction of these resources.
   In conducting manufacturing, distribution, and other operations (including collection and cultivation of raw materials), we will conserve rare animals and plants, use production methods that have the least impact on species and their habitats, and promote the prohibition, reduction, and substitution of environmentally hazardous substances in order to mitigate impacts on biodiversity and ecosystems.
3. (3) Pollution prevention, chemical substance management, and waste treatment
   In our manufacturing, distribution, and other operations, we will prevent air, water, and soil pollution, appropriately manage chemical substances (including those contained in products), and appropriately dispose of waste in accordance with environmental laws and regulations.
   In addition, we will strive to make effective use of resources and avoid adverse effects on the environment and human health.

5Social contribution

1. (1) Contribution to local and global communities
   We will voluntarily carry out activities that contribute to the development of our local and global communities.
   We will fully respect local rules, laws and regulations, as well as cultures and customs, and work with local communities to implement initiatives that will help solve the issues they face. We do this with an eye to paving the way toward a prosperous society as we move forward on the road to continual progress.

Established on June 1, 2019