The JCU Group recognizes the importance of its corporate social responsibilities, and in order to fulfill its responsibilities, has established the JCU Code of Conduct as a code of compliance and ethics.

We also identify risks that could have a significant impact on the achievement of our corporate goals and business activities, and implement measures to reduce these risks.

Promoting Compliance

Based on the JCU Code of Conduct, the JCU Group always complies with relevant laws and internal rules in all aspects of its corporate activities, and promotes compliance so that all of its corporate activities comply with normal business practices and social ethics.

This Code of Conduct has been translated into seven languages other than Japanese: Chinese (Traditional and Simplified), Korean, English, Vietnamese, Thai, Spanish, and Indonesian. The Code of Conduct translated into each language is communicated to respective local subsidiaries in light of local customs and laws.

Furthermore, our Corporate Philosophy, CSR Policy, and Code of Conduct are distributed to all employees of the JCU Group to ensure that they are all well-informed.

JCU Code of Conduct (in Japanese only)

Compliance Promotion System

The JCU Group has a Compliance Committee (chaired by the chairman and CEO) under the Board of Directors, where top management take their own initiative in driving compliance forward.

The Compliance Committee is made up of internal directors and a number of executive officers. A meeting of compliance management leaders appointed by individual departments is installed under this Committee. Compliance management leaders make every effort to gather information on legislative revisions and gain an understanding of issues through subcommittees and other organizations for each of the different areas of laws and regulations. The Compliance Management Leaders Meeting discusses the sharing of practical information within the Company and matters that should be reported to the Committee, and the content of these discussions are promptly reported to the Committee. The Committee reviews the report from a management perspective, decides what actions to take as a company, and has the relevant departments execute on these decisions.

Compliance Promotion System

Internal and External Reporting Desk

Compliance Initiatives

The JCU Group has established rules and guidelines, and prepares and distributes manuals in order to ensure that everyone is well-informed on the Basic Code of Conduct which represents our basic approach to compliance. We also provide learning opportunities on our e-learning system, where learners participate on an individual basis. In addition, we conduct internal audits of the Group to detect problems at an early stage. In terms of activities to promote compliance, we are looking into providing training on applicable laws and regulations at each office.

The R&D Center and Niigata Plant hold study sessions on laws and regulations related to their work and on chemicals that require careful handling. We also check their levels of understanding and evaluate capabilities as part of our efforts to ensure compliance.

Furthermore, JCU recognizes the importance of corporate social responsibility and is committed to compliance promotion activities aimed at fostering a workplace where employees conduct themselves appropriately. As part of this effort, we regularly conduct compliance quizzes for all employees. Until now, we conducted sessions in which each participant studied independently at their own desks. However, starting in October 2022, we significantly revamped this content. Training materials have been aligned with JCU’s standards of conduct and regulations, and are presented in an easy-to-read manga style, and implemented every two weeks. By covering topics comprehensively, we strive to raise the level of legal compliance and awareness throughout the Company.

Compliance Consultation Desk

Apart from the internal and external reporting desk, the JCU Group also has a compliance consultation desk that makes it easier for persons to seek consultation on compliance-related questions that they may have about the Company. Information on the compliance consultation desk is provided in the Compliance Manual posted on the intranet to ensure that everyone is well-informed.

Initiatives to Eliminate Antisocial Groups

The JCU Group has set out the elimination of antisocial groups in the JCU Code of Conduct. We have no relationships with antisocial forces or organizations that pose a threat to social order or sound corporate activities, and make every effort to eliminate such groups in cooperation with competent authorities and relevant organizations.

Risk Management Structure

The JCU Group has a Risk Management Committee chaired by the chairman and CEO under the Board of Directors. The Committee is made up of internal directors and a number of executive officers. A meeting of risk management leaders appointed by individual departments is installed under this Committee. The Risk Management Leaders Meeting examines the details of risks identified for each department. and carries out frequent and long-hour discussions based on perspectives such as risk levels and current countermeasures. The content of these discussions is promptly reported to the Management Committee, which reviews the report from a management perspective to identify the risks that are ultimately key for the JCU Group, and determines the countermeasures to be taken at individual departments.

Risk Management Schematic

Risk Management Structure

Key Risks

The Risk Management Committee has identified the following risks as being the 21 key risks for our Company: management (of risk, of distribution). We will make every effort to continue to strengthen our risk management.

IR Documents (in Japanese only)

Driving Forward Business Continuity Management (BCM)

To prepare for unforeseen events, the JCU Group has a business continuity plan (BCP) in place so that we are able to continue our operations and minimize the impact on our customers even in the event of an emergency. We hold briefing sessions on our BCP and distribute booklets explaining the outline of our BCP to raise awareness among employees at all business sites.

The major emergencies that our BCP prepares for include intense earthquakes, storms, floods, fires, IT failures, and supply chain disruptions.

As part of our BCP efforts, we are preparing to commence operations at our second domestic production factory (Kumamoto Facility) in Kumamoto Prefecture. With the establishment of two domestic production bases, we will create a system capable of ensuring stable product supplies to customers even in the event of an emergency.

In addition, at domestic and overseas business locations, we pay close attention to the situation in each country and region, and continue to take various measures. such as preparing first aid kits, setting up emergency contact networks, and reviewing response manuals.

Employee safety and business continuation will continue to be the top priorities in all responses that we take at the JCU Group.

Conducting Drills

At JCU, we systematically carry out BCM drills to raise awareness among executives and employees, and to clarify their roles in the event of an emergency.

In FY2024, we conducted training for proxy ordering operations under a scenario where the Nagoya Branch has sustained damage. Assuming a fire had broken out as a secondary disaster caused by a large-scale earthquake, we conducted a simulation that involved activating business continuity planning, confirming the safety of employees at the Nagoya Branch and the status of damage, and performing ordering operations at the Head Office, which serves as a proxy base. Through this training, we confirmed how each department would behave in the event of an actual emergency and what obstacles we are likely to encounter.

In the event of an emergency, we set up emergency response headquarters at affected offices, and a BCP response headquarters at the Head Office. If this is difficult to set up at the Head Office, it is to be set up at an alternative office in accordance with the manual.

Introduced a Safety Confirmation System

As part of our BCP, JCU has a safety confirmation system in place that enables us to easily and quickly confirm the safety status of our employees during large-scale disasters, or nationwide/ global epidemics or pandemics of communicable diseases. Multiple times a year, we conduct safety confirmation drills on an irregular basis using this system to prepare for emergencies.