Daido Steel Group
Management Philosophy,Guidelines

Corporate Philosophy Structure

Daido Steel Group Purpose & Mission Video

Starting with our company’s DNA and history, which have been handed down from our founder Momosuke Fukuzawa, this video shows our employees, who work at Daido in the present day, talking about their thoughts and feelings, such as “what they are working for” and “what they want to accomplish.”

DAIDO STEEL GROUP Purpose & Mission video（English）

Daido Steel Group Corporate Code of Ethics

1. Strive for achieving sustainable economic growth and resolving social issues through technology, service, and quality that maintain the satisfaction and trust of customers and society.
2. Compete for business and conduct appropriate business and responsible procurement in a fair, transparent, and free manner and maintain sound and normal relationships with political and administrative institutions.
3. Improve corporate value through proactive and fair disclosure of Daido’s corporate information and constructive communication with a wide range of stakeholders.
4. Conduct business that respects the human rights of all people.
5. Provide customers with appropriate information related to products and services and sincerely communicate with them to earn their satisfaction and trust.
6. Respect the diversity, individuality, and personality of employees and secure a safe, healthy, and rewarding workplace to realize comfort and affluence.
7. Act positively and voluntarily with the awareness that environmental issues are something common to all people and essential requirements for the existence and activities of a company.
8. Conduct all corporate activities as a good corporate citizen based on corporate ethics and legal compliance. Also, give careful attention to protecting personal and customer information. In conducting international corporate activities, respect the various international norms as well as local cultures and customs and manage in a way that allows contributions to the development of such cultures and customs.
9. Take a stringent and resolute attitude toward and cut ties with antisocial forces or organizations that threaten the order and safety of civil society, and thoroughly implement organizational crisis management in preparation for terrorism, cyberattacks, natural disasters, and other emergencies.
10. To realize the spirit of the Daido Steel Corporate Code of Ethics, management assumes the responsibility of taking the initiative in building effective governance and ensuring that it is thoroughly understood within the company and group companies, as well as making the supply chain aware of the same. In the event of any violation of this code, the management investigates and resolves the matter on its own and makes prompt and accurate disclosure of information pertaining to the matter. After such disclosure, the management implements measures to prevent recurrences and disciplines violators.

Daido Steel Group
Code of Conduct

Chapter 1: Matters related to business activities

1. Promotion of sustainability management
   1. We fully understand our company's policies and business plans based on the Sustainable Development Goals (SDGs), comply with those policies, and actively work to implement the business plans.
2. Thorough compliance
   1. We comply with laws and contracts and do not leave violations of them unaddressed or participate in such violations. We act with common sense and integrity based on social norms and corporate ethics.
   2. We do not promise, offer, permit, provide, or accept any means to gain unfair or improper advantage and act in accordance with corporate ethics.
   3. We act in accordance with compliance ourselves and continue to encourage all business partners, including suppliers, to ensure compliance.
3. Provision and safety of trusted products and services
   1. We make every effort to make the products and services we provide the best.
   2. We actively conduct marketing activities and act to capture not only actual needs but also potential needs.
   3. We actively develop unique products and unique processes, omit or shorten manufacturing processes, improve yields, and reduce CO2 emissions and energy consumption.
   4. When providing products and services, we comply with domestic and international criteria and standards, and conduct appropriate quality control.
   5. When a problem occurs with the products or services we provide, we thoroughly investigate the cause and implement thorough measures to prevent recurrences.
   6. We comply with not only Japanese laws and regulations but also laws and regulations outside Japan that are applicable to Japan and our company, take measures such as not using conflict minerals and conduct responsible procurement with an emphasis on protecting the human rights of people involved in the supply chain.
4. Fair and impartial transactions
   1. We comply with competition laws in and outside Japan and engage in fair and impartial transactions without engaging in any act that constitutes or is likely to constitute bid rigging or cartels (unfair trade restraints such as unfair price fixing).
   2. Based on competition laws, we do not make unreasonable demands on business partners if we are in a superior position in our relationship with the business partners. Furthermore, when conducting subcontract transactions with subcontractors, we comply with the Subcontract Act.
   3. We conduct export control and transactions in compliance with laws and regulations inside and outside Japan related to security trade control.
   4. We do not accept entertainment from business partners that goes beyond the bounds of social common sense and etiquette. Additionally, we refrain from accepting gifts as much as possible. If we receive entertainment, it should be within the bounds of social common sense and etiquette, and it should not inappropriately have an impact on our business decisions.
   5. When providing entertainment or gifts, we do so by following the prescribed procedures and within the bounds of social common sense and etiquette, ensuring transparency.
5. Protection of intellectual property rights
   1. We respect intellectual property rights and act with the utmost care not only to ensure that they are not infringed but also to avoid infringing on the intellectual property rights of others.
6. Appropriate information management
   1. We acquire internal and external trade secrets (confidential information) in an appropriate manner within the scope of our own business, treat that information as confidential, and do not use or disclose it for any other purpose. We comply with this policy regarding trade secrets learned in the course of business, both inside and outside the company, not only during employment but also after retirement.
   2. When acquiring and using personal information and customer information, we clearly define the purpose of use, pay attention to its protection, and strictly manage it.
   3. We comply with the information management rules based on the basic information management policy and protect business information from cyberattacks, such as unauthorized access, and unauthorized disclosure. When we become aware of or suspect any unauthorized access or unauthorized disclosure, we promptly report it to our department manager and our information management department.
   4. We comply with insider trading regulations and do not buy or sell stocks based on nonpublic company information. We also avoid actions that may arouse suspicion.
7. Appropriate information disclosure
   1. We communicate widely with various stakeholders, including local communities, investors, customers, business partners, and employees, and disclose company information proactively, fairly, and in a timely manner using the appropriate means.
   2. We conduct strict accounting procedures and disclose accurate financial information after undergoing internal approval procedures.

Chapter 2: Relationship between company and employees

1. Ensuring healthy and safe working environment
   1. We comply with labor laws and give top priority to the physical and mental health of our employees and to ensuring a safe working environment.
   2. We comply with relevant laws and regulations in all workplaces, accurately grasp and report working hours, pay appropriate wages, and encourage employees to take leave without forcing them to work long hours. We also appropriately operate equipment and tools and handle fuels and hazardous substances.
   3. In an emergency or an extraordinary situation, we notify employees thereof using appropriate means. We also regularly check evacuation routes and conduct drills in an effort to minimize the risk of our employees being involved in a disaster.
2. Addressing violations
   1. When we discover any act that violates or is likely to violate compliance, we do not allow such violations to continue by reporting them to our superiors, contacting or consulting with the relevant departments, or utilizing the whistle-blowing system to bring the problem to light.
   2. We do not engage in any act that would be disadvantageous to the reporter or consulter because of the above-mentioned report or consultation.
   3. We take strict action against those who violate company rules, thoroughly investigate the cause, and devise and implement effective measures to prevent recurrences.
3. Prohibition of acts that harm the interests of the company
   1. We manage the company's tangible and intangible assets appropriately without using them for purposes other than business.
   2. We do not engage in conflicts of interest.

Chapter 3: Relationship between company and society

1. Cutting ties with antisocial forces
   1. We do not have any relationship with any individuals or organizations that have a negative impact on social order, safety, or sound company activities.
2. Healthy relationships with politics and administration
   1. We do not bribe public officials (public servants or equivalent persons) in and outside Japan. Furthermore, we are not involved in bribery of public officials.
   2. When we engage in political activities as a company, we carry out the necessary procedures and obtain appropriate approval beforehand.
3. Preservation of global environment
   1. We understand that this earth is unique and strive to recycle limited resources and make efforts to preserve biodiversity, taking into consideration the impact that our business activities have on the natural environment.
   2. We promise that our offices, factories, and other workplaces will conduct business while paying due attention to the health and safety of nearby residents and the preservation of the local community's environment. We also strictly comply with applicable environmental laws and regulations.
   3. In order to contribute to the creation of a decarbonized society, we work to reduce CO2 emissions from manufacturing processes and actively work on developing products that help decarbonization of the society.
   4. We appropriately manage the use and discharge of water and strive to make effective use of water, which is an important resource.
4. Respect for diversity and human rights
   1. We conduct our business while respecting the human rights of all people.
   2. We respect diversity by accepting differences such as nationality, race, ethnicity, skin color, gender, age, pregnancy, culture, religion, ideology, organization affiliation, sexual orientation, gender identity and expression, political opinions, marital status, disability status, and military experience. We develop human resources through fair evaluation and treatment of each individual's roles, duties, and achievements.
   3. We do not tolerate any act that violates human rights, such as forced labor, child labor, discrimination, violence, or harassment and respect the rights of workers, both within our company and throughout our supply chain.
5. Social contribution
   1. As a good corporate citizen, we strive for close collaboration and cooperation with society and local communities and contribute to the development of local communities.
   2. We respect the environment, culture, and customs at each business location. We protect the health and safety of local residents, and especially respect the culture and lifestyle of indigenous peoples.

Daido Steel Group
Code of Conduct video

This video introduces the positions of the Daido Steel Group’s philosophies, the contents of the Code of Conduct, and how they are utilized.

DAIDO STEEL GROUP Code of Conduct Video（English）

Code of Conduct Guidebook

• Code of Conduct Guidebook（English）
• Code of Conduct Guidebook（Chinese）