Corporate Governance

Compliance with Corporate Ethics in Our Business Activities

1.Conflict of Interest

In the event of a conflict or potential conflict between personal interests and those of the company, it is essential to address and resolve the issue promptly. In the event that any of the aforementioned situations are identified, you are required to disclose them promptly to your supervisor or manager.

2.Money Laundering

Money laundering of remuneration obtained through tax evasion, fraudulent accounting practices, or other types of deception, as well as income from unidentified sources, shall be strictly prohibited.

3.Prevention of Anti-Competitive Behavior

The Antimonopoly Act prohibits practices such as "private monopolization," "unreasonable restraint of trade," and "unfair trade practices." We are committed to ensuring that our corporate activities adhere to this crucial legislation, thereby promoting the development of a market economy through free and fair competition.

4.Prevention of Bribery and Corruption

Acts such as bribery and corruption compromise legitimate business transactions and endanger the integrity of the company's operations. We are committed to a zero-tolerance policy to safeguard our ethical and professional standards.

5.Measures Taken against Violations Related to the Above

Individuals found to be in violation of these policies will face disciplinary actions in accordance with the company regulations. Furthermore, in the event that their actions breach criminal law, we will fully cooperate with judicial authorities in alignment with our responsibility as a corporate citizen.

6.Relationship with Society

1. Contributions to local communities

   As a company integral to society's healthy progress, we actively engage in and support initiatives that contribute positively to community well-being.

2. Confrontation with anti-social forces

   Employees must firmly resist any demands for transactions or financial favors from anti-social entities and ensure no association or ties with such groups.

3. Fair and transparent political participation

   When making donations to political organizations or other groups, you shall comply with the Public Offices Election Act, the Political Funds Control Act, and all relevant laws. You shall not engage in any conduct that could cause misunderstandings or misinterpretations.

7.Relationship with Employees

1. Respect for Human Rights

   In terms of employment and employee treatment, we uphold the human rights of our employees, ensure fair and equitable treatment and prohibit discrimination based on beliefs, gender, religion, nationality, age, educational background, or other personal attributes under all circumstances.

2. Prohibition of Sexual Harassment

   Sexual harassment, abuse of power or status, intimidation, and any actions that could be perceived as such are strictly forbidden.

3. Protection of Privacy

   Employee personal information shall be managed responsibly and used solely for its intended purpose. Disclosure to external parties is strictly prohibited without the individual's consent, except in cases involving valid legal reasons, such as a court order.

4. Compliance with Labor Laws and Regulations

   Labor laws and regulations shall be observed to ensure proper management of working conditions, including working hours.

5. Workplace Safety and Health

   Maintaining a clean and well-maintained workplace is crucial for ensuring an optimal work environment.
   Furthermore, we are committed to adhering to all safety and health provisions outlined in the office regulations and the Safety and Health Management Regulations. We are committed to ensuring the well-being of our employees.

8.Confidentiality Obligations and Protection of Consultees

In light of the importance of adhering to corporate ethics, we have appointed the General Manager of Administration Department as the point of contact for consultations regarding the elimination of harassment. The General Manager is obligated to maintain confidentiality toward the person seeking consultation and is also responsible for ensuring that the person seeking consultation does not experience any disadvantage as a result of reporting. Furthermore, necessary investigations will be conducted based on the content of the consultation. We consider it a vital directive from the President that, for the growth of the company, any issues identified in our immediate surroundings must be addressed promptly.

Consultations and Training

Compliance Structure

As stated in the Compliance Policy, the Administration Department and Human Resources Department are designated as the contact points for compliance-related inquiries. The General Manager of Administration is responsible for handling important consultations and inquiries from overseas offices. We accept compliance reports and inquiries at all times.

Compliance Training

In addition to providing employees with information on "Compliance with Corporate Ethics in Our Business Activities", we are conducting compliance training through correspondence courses to raise employee awareness. In FY 2020, three employees completed a compliance-related course. We will continue to promote compliance education to ensure that more employees are aware of compliance issues.

Compliance Measures at Overseas Locations

While codes of conduct and ethical standards vary across different regions and countries, our overseas plants and offices are committed to adhering to the laws and regulations of each jurisdiction, as well as respecting local customs. The following is a list of compliance measures that have been implemented at our overseas locations.

Sakae Riken (Wuxi) Technology Co, Ltd.

Corporate Responsibility Management Policy

Sakae Riken (Wuxi) Technology Co., Ltd. has established a compliance policy covering areas such as the prohibition of corruption, bribery, and monopolization of profits. The policy promotes fair competition and emphasizes honest, transparent management. It also opposes the dissemination of false information and upholds strong information security practices, including confidentiality.

Communication and Consultation Participation Policy

This policy establishes the framework for fair communication between labor and management. It also outlines internal reporting procedures related to compliance, fostering sound and ethical corporate governance.

IT Information System Management Guidelines

This policy details the management of personal and confidential information, as well as daily risk assessments to safeguard against security breaches.

Other

Sakae Riken (Wuxi) Technology Co., Ltd. undergoes a biannual audit, conducted by a certified public accounting firm.

Eakas Corporation

Eakas Corp Handbook

Eakas Corporation has implemented a compliance policy that aligns with our "Compliance with Corporate Ethics in Our Business Activities." This policy has been communicated to all employees. The company has also established internal reporting procedures for compliance issues and actively promotes awareness among its workforce.

PT. Sakae Riken Indonesia

Information Technology Policy

PT. Sakae Riken Indonesia has established a set of guidelines to prevent and restrict information infringements by third parties and is diligently enhancing its security protocols.

Basic Policy on Specific Personal Information

Personal information, including the Individual Number, is strictly confidential and must be handled with the utmost care. The "Specific Personal Information Management Regulations" stipulate the guidelines for the handling of such personal information. The Administration General Manager is responsible for supervising compliance with these regulations. We provide regular training opportunities to ensure that employees fully understand the operating rules and measures to prevent information leakage.

Personal Information Management System

The Head of specific personal information management oversees the Operations Manager and the Information Security Manager, and is responsible for the management and supervision of the handling of specific personal information. The Operations Manager is responsible for planning and managing employee training and awareness programs, as well as ensuring stable and continuous operations. The Information Security Manager is responsible for organizing system and physical measures to prevent information leaks.

Cyber Security

Our employment regulations mandate comprehensive security measures, including organizational, technical, physical, and individual approaches, to prevent the leakage of specific personal information and ensure compliance with applicable laws and regulations. The Administration Department has established accident response procedures to address incidents such as information leaks or malfunctions of IT systems and office equipment, to minimize the damage. Beyond IT system management, we have implemented physical access regulations for visitors and facility tours, striving to uphold a robust information protection framework.

Organizational Approach

• The "Specific Personal Information Management Regulations" were established to clarify the responsibility framework for handling personal information.
• In order to prepare for potential incidents, such as information leaks, the Operations Manager's mobile phone number is made available to all employees. This will ensure uninterrupted access to the Administration General Manager or the Information Security Manager at any time, day or night.
• We conduct random drills as a measure against information leakage incidents.

Individual Approach

• We conduct periodic training sessions for employees to ensure the proper and secure handling of specific personal information.
• The office regulations specify protocols for handling specific personal information, and these are communicated to all employees to ensure compliance.
• All employees who handle confidential personal information are required to sign a written confidentiality pledge.

Physical Approach

• Documents containing specific personal information must be stored and managed in a lockable cabinet.

Technical Approach

• Access to the company's internal IT system is restricted to authorized personnel, and access logs must be maintained. Passwords must not be reused.
• To prevent unauthorized access, firewalls must be used at the interface between internal information systems and external networks.