Charter for Corporate Behavior / Behavioral Guidelines

Lion Group Charter for Corporate Behavior

We, the Lion Group, shall, in addition to being an economic entity designated to pursue profits through fair competition, act as a social entity that contributes to society at large. We shall respect human rights and conduct ourselves with initiative in a socially responsible manner toward the creation of a sustainable society, observing both the spirit as well as the letter of all applicable laws and international rules and not harming the public interest, both in Japan and abroad, in accordance with the following 10 principles.

1. Principal Mission

We shall earn the confidence and satisfaction of customers (consumers and users) by providing excellent, safe goods and services useful for their daily lives.

2. Compliance with Public Rules

We shall observe all relevant laws and regulations and engage in fair, transparent and free competition and proper transactions. We shall maintain sound and proper relationships with governmental and political bodies.

3. Disclosure

We, as a socially open company, shall actively engage in communication not only with our shareholders but also with members of society at large and disclose information generally regarding Company management in an appropriate and timely manner.

4. Environmental Issues

We shall play a positive and active role in creating a sustainable society that harmonizes economic development and environmental protection.

5. Improvement of Working Environments

We shall promote fair treatment and respect the diversity, individuality and personalities of our employees. We shall ensure a safe and comfortable workplace to realize the mental and physical well-being of our employees.

6. Contribution to Society

We shall actively contribute to society as good cooperate citizens.

7. Opposition to Antisocial Forces

We shall firmly oppose antisocial entities and organizations threatening the order and security of civil society.

8. Contribution in Foreign Countries

In our overseas operations, we shall not only observe international rules and the laws of relevant foreign countries, but also respect local cultures and customs and contribute to the development of local communities with sincerity and mutual trust.

9. Practice of Corporate Ethics

Top management shall assume responsibility for implementing the spirit of this Charter and shall take the initiative to set a good example and fully inform Lion Group employees of the Charter. Top management shall strive to take in internal and external opinions continuously to promote mutual understanding and the development and implementation of effective internal control systems while enforcing thorough compliance with corporate ethics.

10. Resolution of Problems

Should an incident contrary to the principles of this Charter occur, top management shall publicly clarify its position, taking responsibility to resolve the problem on its own initiative, and strive to investigate the facts, identify the causes of the incident and prevent recurrences. Top management shall fulfill its responsibility to disclose accurate information promptly and explain the situation, and shall resolve the problem in a manner fully understandable to society. After clarifying authority and responsibility for said problem, top management shall impose strict and impartial disciplinary actions upon any liable persons, including the highest level of management.

Established January 1, 2003
Amended January 1, 2008

Behavioral Guidelines

1.To earn the confidence and satisfaction of customers (consumers and users) by providing excellent, safe goods and services useful for their daily lives, we promise the following.

  • We will always work to more deeply understand customer needs.
  • We will always work to provide more innovative, higher-value products and services to customers to improve their quality of life.
  • We will make the safety of the products and services we provide our top priority.
  • We will strive to ensure the quality of our products and services and always work to improve the systems and mechanisms that we use to achieve this.
  • We will provide customers with accurate information about our products and services.
  • We will respond to input from customers with sincerity and seek to make use of such input in the creation of products and services.
  • We will take the greatest care in handling customer information and other personal information and protect it appropriately.
  • We will hire and develop the necessary human resources and foster an open corporate culture that facilitates uninhibited communication in order to create more innovative, higher-value products and services for customers. Furthermore, we will build efficient systems and frameworks not only within the Company, but also in our dealings with our trading partners.
  • We will, in the course of providing customers with products and services, abide by all applicable laws and strive to deeply understand the surrounding society and culture, both in and outside Japan.
  • We will respond quickly, appropriately and sincerely should a product-related accident or other problem occur.

2.To always do the right thing, we promise the following.

  • We will not partake in any illegal activity, pursue profit by improper means or means that run contrary to the public interest, nor will we engage in antisocial activity.
  • We will secure appropriate profit through fair, free competition and maintain sound relationships with customers and trading partners.
  • We will take an active interest in the legal compliance, product quality and safety, environmental protection, human rights and labor conditions, and other related aspects of our suppliers, working with them to mutually promote the fulfillment of corporate social responsibility.
  • We will value creativity and strive to create, properly protect and actively utilize intellectual property. Furthermore, we will respect the intellectual property of others and not seek to improperly acquire or use it.
  • We will recognize the importance of the Company's confidential information as a management resource and strive to manage information appropriately. Furthermore, we will respect the confidential information of others and not seek to improperly acquire or use it.
  • We will not accept hospitality, gifts or money from trading partners for the purpose of inappropriate acquisition of profit. Furthermore, we will not engage in behavior that invites the creation of business relationships based on personal interest.
  • We will not engage in behavior that could be perceived as collusion or improperly close relations with governmental or administrative bodies.
  • We will constantly reevaluate the customs, systems and basic concepts of fairness and transparency that we normally take for granted to ensure that they are properly aligned with societal norms.
  • We will, in importing and exporting transactions, comply with international rules and the relevant laws of all countries involved.

3.To manage and disclose information related to all aspects of corporate management in an appropriate and timely manner, we promise the following.

  • We will provide customers and society at large with trustworthy, useful information in a timely manner.
  • We will accept input from customers and society at large with humility and make use of such input in management.
  • We will strive for efficient, effective communication with customers and society at large by utilizing a variety of means and opportunities for communication and working to improve related mechanisms.
  • We will strive to promote correct understanding of our management activities among shareholders and investors.
  • We will handle the Company's confidential information, as well as that of our trading partners learned through business operations, with the greatest care, and will not engage in insider trading.
  • We will value communication with local communities.

4.To realize a sustainable society, we promise the following.

  • We will establish and implement voluntary behavioral standards related to environmental protection.
  • We will strive to evaluate the environmental impact of our business activities and seek to minimize environmental burden and risk.
  • We will continuously create and provide advanced environment-friendly products and services while constantly improving related standards and systems.
  • We will make maximum use of the technologies and human resources we have developed in order to contribute to international environmental protection activities.
  • We will contribute to efforts to protect the natural environment, including the preservation of biodiversity.
  • We will seek to meet society's demands and actively disclose our environmental initiatives and their results.

5.To ensure relationships of trust with employees (including part-time, temporary, dispatch, contract and other non-regular employees) based on fairness and good faith and to create vibrant, comfortable workplaces, we promise the following.

  • We will trust in the abilities and motivation of employees and respect their personalities and individuality.
  • We will provide equal employment opportunities and treat employees fairly, and we will not engage in discriminatory practices.
  • We will promote a healthy work-life balance and strive to maintain work environments that flexibly allow a variety of working styles.
  • We will do our utmost to assist employees who strive to learn specialized skills and knowledge and aim for ambitious goals.
  • We will fairly evaluate the performance and contribution of employees.
  • We will deal sternly with members of management or employees who offend public order or morals.
  • We will engage sincerely in dialog and discussion with employees and their representatives to build and maintain sound, cooperative labor-management relationships.
  • We will not permit child labor or forced or coerced labor.
  • We will make workplace safety for our employees our greatest priority.
  • We will support the health of our employees.

6.To make maximum use of the profits we receive from customers as well as the technologies and human resources we have developed to actively contribute to society, we promise the following.

  • We will work to spread the knowledge and techniques necessary for healthy, comfortable living and to contribute to the development of dentistry and other relevant scientific fields.
  • We will work together with partners, including non-profit organizations, non-governmental organizations and local communities, as necessary to help resolve social issues.
  • We will actively strive for harmonious coexistence with local communities.
  • We will value our employees' desire to volunteer and contribute, and support their social participation.

7.To ensure that management actively refuses all ties with antisocial forces and groups, we promise the following.

  • We will act as a good corporate citizen, with an awareness of legal compliance and social mores.
  • We will deal with any contact from antisocial forces or groups based on a steadfast fundamental stance of not paying, utilizing or fearing them.
  • We will work with external institutions to stand against and eliminate any organized violence from antisocial forces or groups.
  • We will do our utmost to support individuals and organizations that steadfastly oppose antisocial forces or groups.

8.To contribute to local development overseas, we promise the following.

  • We will strive to deeply understand local customs and culture, and to avoid offending public order or morals.
  • We will promote exchanges with local companies in our business activities, including those involving technologies and human resources, aiming for mutual prosperity.
  • We will not engage in bribery or provide hospitality to the government officials of other countries for the purpose of inappropriate acquisition of profit.

9.To ensure total compliance with corporate ethics, Lion's management promises the following.

  • Lion's management will always be aware that earning and maintaining customer trust is the foundation of management activities.
  • Lion's management will strive to ensure compliance with laws and regulations, the Company motto, the Management Philosophy, and the goal of being a company that serves and contributes to society at large while providing leadership to the best of its ability as it engages in corporate management.
  • Lion's management will always be attentive to opinions from both inside and outside the Company and take responsibility to ensure that the Company can respond appropriately.
  • Lion's management will maintain internal systems by which all employees can report improper conduct and will deal with improper conduct appropriately, seeking to prevent recurrences.
  • Lion's management will maintain organizational protections to ensure that those who report improper conduct do not suffer any repercussions or disadvantage.
  • Lion's management will, to further strengthen corporate ethics, check the effectiveness of and make improvements to related systems as needed, continuously working to promote the penetration and rooting of corporate ethics.

10.To ensure effective crisis management, Lion's management promises the following.

  • Lion's management will maintain internal systems to prevent crises from occurring.
  • Lion's management will, in the event of a crisis, take command of the response and act in a way that will be clear to society in order to quickly understand the facts of the situation, identify its causes, and determine the policy and measures the Company should enact to take responsibility. Management will take the initiative to clearly, quickly and accurately explain the situation, the Company's response, and measures being undertaken to prevent recurrences.
  • Lion's management will quickly determine responsibility for crises and impose strict and impartial disciplinary actions upon liable persons. As necessary, management may impose such strict actions upon itself so that society will fully understand its response.

Established January 1, 2003
Amended January 1, 2008