Basic Policy

An enterprise should pursue profits through fair competition as an economic entity, and at the same time should be a force for the greater good of society.

Based on its corporate philosophy “to cherish life and benefit society by contributing to better health,” the Kyorin Group will conduct its activities in every country based on a high standard of corporate ethics, respecting human rights and observing all laws, as well as standards of conduct and the spirit thereof.

Measures

To ensure the Group’s activities are based on a high standard of corporate ethics, the Company has built a compliance framework. It has drawn up the Kyorin Holdings Corporate Charter, updated its Compliance Guidelines to their current form in August 2010, and holds a Compliance Committee meeting once a month.

1. The Kyorin Holdings Corporate Charter was developed to specify matters of corporate ethics and compliance in accordance with our corporate philosophy, and serves as the starting point for our corporate activities.
2. The Compliance Guidelines complement the Kyorin Holdings Corporate Charter by clarifying the standards to be followed for sound and proper business activities.
3. In March 2006, the Compliance Committee was established to provide overall supervision of corporate ethics and compliance systems. Each company has a compliance promotion manager who is responsible for the understanding and instilling of corporate ethics and compliance.

Education and Training

In-house training courses are conducted to promote understanding of and instill corporate ethics and compliance.

1. Compliance managers organize education and training courses on corporate ethics and compliance, which are conducted at each level of the organization on a Companywide basis, and run instructional activities for Company officers and employees.
2. Details relating to corporate ethics and compliance are incorporated into job function-specific training conducted by each division to promote understanding and instill a sense of ethics and awareness of compliance among employees.
3. Each November is designated as compliance enhancement month, during which time the Company works to tighten up on compliance at every level.

1. Preventing global warming

• Reduce the amount of fuel used by installing cogeneration systems and using smaller boilers
• Reduce power consumption by controlling air conditioning settings to 28°C in summer and 21°C in winter
• Use eco-cars and hybrid vehicles to improve fuel efficiency and reduce exhaust emissions

2. Reducing waste volume

• Reduce waste emissions and promote recycling towards achieving zero final landfill, and introduce a negative carbon printing system

3. Managing chemical materials

• Manage substances covered by the Pollutant Release and Transfer Register (PRTR) Law, and evaluate methods for reducing amounts used and the use of alternatives

4. Preventing atmospheric pollution

• Measure and control the amounts of soot and smoke, nitrogen oxides (NOx) and sulfur oxides (SOx) emitted by boilers and generators

5. Preventing water pollution

• Process wastewater, including by primary processing plants, and management of pH, biochemical oxygen demand (BOD), and suspended solids (SS) levels

6. Preventing deforestation

• Recycle paper, use recycled paper, and promote a paperless office environment

7. Preventing destruction of the ozone layer

• Swiftly replace equipment that uses specified chlorofluorocarbons

8. Preventing ground subsidence

• Check for ground subsidence and improve utilization of piped water

9. Preventing contamination of soil and surface water

• Locate tanks above ground, install oil barriers, and implement emergency response training

10. Noise reduction

• Take steps to measure and manage noise levels

11. Preventing foul odors

• Install draft chambers and use scrubbers to remove odors

1. Rate and severity of work accidents

As a result of measures implemented to prevent work accidents, the frequency and severity of such accidents are much lower than the industry average. There have been no fatal accidents since the start of operations.

2. Vehicle accidents

Despite setting a target of a year-on-year reduction of around 40% in the number of vehicular accidents per branch, in fiscal 2010 there were 202 accidents, 16 more than the previous year. To turn around this increasing trend in vehicle accidents, for fiscal 2011, the Kyorin Group is implementing various accident-prevention measures, incorporating both physical and systematic approaches.

Cherry blossom viewing party

The Kyorin Pharmaceutical Discovery Research Laboratories and Development Research Laboratories hold an annual party for viewing the blossoms on cherry trees that are more than 40 years old. As usual, this year’s party had many participants.

The occasion was also used as an opportunity to explain Kyorin’s environmental and occupational safety activities.

Summer evening parties

Each year, the KYORIN Pharmaceutical Development Research Laboratories and various plants hold summer evening parties to which local residents are invited. These are popular events that provide an opportunity to further promote understanding of the Company’s activities.

Local cleanup activities

For nine years, the Okaya Plant has been a “foster parent” responsible for beautifying a section of the shore of Lake Suwa as part of the Lake Suwa Adoption Program. Employees also help to keep the lakeside park clean.

Employees of the Noshiro Plant participate in voluntary activities to maintain the Kaze-no-Matsubara, a pine forest and recreational area that acts as a barrier protecting the locality from winds.

In our head office, employees participate on a voluntary basis in cleanup campaigns carried out twice a year by the local Chiyoda City authorities.

Distribution of Doctor Salon booklets

Radio Nikkei broadcasts Doctor Salon, a program aimed at physicians. These broadcasts have been compiled into booklets, which KYORIN Pharmaceutical’s medical representatives distribute during their monthly calls on doctors. A wide range of diseases is covered, providing timely coverage of current topics, making the booklets very popular with primary care physicians.

Supporting sporting events

The Kyorin Group supports sporting events that help to promote health. Among these is the Shimotsuke Soccer Workshops for children, with former J-League players and other soccer athletes serving as instructors.