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Corporate Philosophy, and NGK Group Guidelines for Corporate Behavior

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Corporate Philosophy

NGK products and technologies must create new value and contribute to the quality of life.

Guidelines for Corporate Behavior

NGK's hope is to keep making a contribution as a corporate citizen throughout the society regardless of at home or abroad. We have developed guidelines for all employees of NGK Group to comply with laws and corporate ethics, and set up the company structure where such guidelines can be followed.

NGK Group Guidelines for Corporate Behavior

Ⅰ.Realization of Corporate Philosophy

1. Providing Products that Contribute to Better Social Environment

From a long-term global perspective, we will commit ourselves to create new value by providing products and services that protect the global environment and realize safety and security in the society.
We will gain trust from our customers and society by seeking quality and safety.

Guideline Items
  • We will seek innovation in our technologies and will create attractive products and services that will be useful for society.
  • We will try to develop and improve our products and services by responding sincerely to our customers latest needs and requests for improvement.
  • We will commit ourselves to the enhancement of quality and reduction of cost. We will deliver products and services that are safe and trusted to every part of the world.
  • We will respond to any complaints or accidents expeditiously and in good faith. We will accurately recognize the fact and will try to prevent reocurrence by thoroughly investigating the cause of such complaints and accidents.
  • We will hold ourselves to high standards, will commit ourselves to the work at all times with the mindset to improve ourselves and will challenge the target with tenacity.

Ⅱ.How to Engage in Business Activities

2. Disclosure of Corporate Information

We will release, in an accurate and timely manner, any information sought by the public; including information on our management, finance, products and services to improve transparency in management and to gain society's trust in the NGK group companies.

Guideline Items
  • We will promptly disclose any information required by society in accordance with the applicable laws, regulations and our internal rules.
  • We will establish and adequately operate the mechanism for internal control, relating to financial reports, in order to disclose accurate financial information.
  • We will exhaust our good faith effort to answer any inquiry from our customers on our products and services and will provide our response in a such manner as shall be appropriate.
3. Thorough Enforcement of Compliance; Risk Management

We will abide by the laws and rules of each country and area and will enforce our compliance thoroughly, respecting international arrangements that are applicable to us.
We will develop human resources who are sincere and have a high ethical standards. In addition, through our efforts to build an internal control system and implement risk management, we will protect our corporate assets and credit, as well as rights of third parties.

Guideline Items
  • We will abide by the applicable laws, regulations, and rules, international arrangements and commercial practices, as well as our internal regulations, etc., and will always act in good faith.
    • We will observe regulations relating to national security and export control and will ensure that we manage our operations pursuant to internal regulations and rules.
    • We will observe anti-trust laws and refrain from engaging in improper conduct or transactions.
    • We will comply with our internal regulations and will not engage in insider trading when we sell or buy shares of our company or our business partners, etc.
  • We will have an understanding of how corporations or individual persons should act with reference to ethical standards and will act in good faith.
  • We will take a firm and stern attitude and action against any unlawful or improper pressure from external force.
  • We will try to act prudently in dealing with our customers and, if the other party is an officer or employee of any public institution, we will refrain from taking any suspicious action, whether in our own country or in other jurisdictions.
    • We will not offer entertainment or gifts with the purpose of allowing the company to gain improper benefit.
    • We will not engage in any act with the purpose to realize personal gain in connection with our business.
  • We will assign our organizations and human resources in a manner that reflects our sensitivity to internal control to avoid excessive concentration of authority in particular persons or organizations.
  • We will recognize and/or appraise risks through the CSA questionnaire and risk assessment and will try to prevent problems and take appropriate actions upon occurrence of problems by taking necessary responsive measures.
  • Upon detection of any incident or accident, we will promptly report to our supervisors and follow their instructions.
  • We will use and manage property and assets of the company in an appropriate manner and will not use them improperly or misappropriate them for personal purposes.
  • We will use and/or manage any information asset such as paper documents and electronic data properly in accordance with the applicable laws and regulations and internal regulations, etc.
    We will refrain from unauthorized acquisition or use of personal information of our employees or contract employees, or information of our customers or business partners.
  • We will handle personal computers, cellular phones, etc. with care in accordance with internal regulations and will not permit any leak of information to any person or entity outside our organization.
  • We will actively acquire intellectual property rights, including patents, and will adequately manage and use acquired intellectual property rights.
    In addition, we will respect rights of third parties including those in software and will take appropriate actions against any act of infringement.
  • We will not permit any improprieties. If we detect any violation of these Guideline Items or Guidelines for Corporate Behavior, we will report to or consult with our supervisors or appropriate functions.
    If necessary, we will use the helpline without hesitation.
4. Respect of Humanity and Assurance of Comfortable Working Environment

We will hire and treat our people in a proper and fair manner and will provide a safe and pleasant working environment in which our people can work comfortably without sacrificing their family life.
We will make available the place and opportunities that can be challenged by people with versatile talent and will support the development of human resources through acquisition of knowledge and expertise.
We will prevent any bullying, discrimination, harassment or other acts that violate human rights and, if there is any violation, we will take appropriate actions in an expeditious manner.

Guideline Items
  • We will not engage in any conduct that hurts the dignity of individuals including, but not limited to, discrimination based on race, nationality, belief, sex and handicapped condition, or bullying and harassment.
    If we witness or suffer such act, we will report to or consult with our supervisors or the Personnel Department and, if necessary, will use the helpline system.
  • We will actively participate in education and training opportunities and will always try to develop ourselves and enhance our abilities.
  • We will understand and observe work regulations and laws and regulations relating to labor, safety and hygiene. We will try to prevent the occurrence of any labor accident and will develop a workplace that provides a safe and comfortable work environment.
  • We will care about daily communications and will seek to realize a workplace that allows each and every employee to work in a pleasant and cheerful environment.
    We will also provide our support to ensure that our subordinates and peers can work without sacrificing their family life and provide care for their children.
5. Implementation of Fair, Free and Transparent Transactions

As a good and equal partner, we will implement fair, free and transparent transactions in search of co-prosperity with our business partners.
In addition, we will promote our commitment to discharge corporate responsibility for the society throughout the supply chain of the NGK group companies.

Guideline Items
  • We will observe our internal regulations regarding placement of orders and will not engage in any transactions that violate the Subcontract Act (Act against Delay in Payment of Subcontract Proceeds, Etc. to Subcontractors) and other similar laws.
  • We will act prudently with the understanding that our business partners are our equal partners. We will not engage in any conduct that provides unlawful profit to the company by taking advantage of our superior position over our business partners. In addition, we will not engage in any act with the purpose to realize personal gains in connection with our business.
  • With the understanding that society requires our commitment to social responsibility throughout our supply chain, we will place priority on transactions that are consistent with "NGK Group Green Procurement Guidelines" and "NGK Group CSR Procurement Guidelines"

Ⅲ.As a Member of Society

6. Preservation of Global Environment

We will contribute to the preservation of the global environment by committing ourselves to take the lead in reducing environmental burdens at every location and in every process that is involved in our business activities.
We will cooperate in efforts with local communities to preserve the environment and will also actively support our employees' effort for such purposes.

Guideline Items
  • Recognizing the impact to the environment and society as a result of our business activities, we will observe applicable laws and regulations and our corporate standards relating to the environment, will periodically inspect facilities and measure environmental performance and will keep accurate records of such activities.
    In addition, if we detect any anomaly, we will promptly report the same to our supervisors and managers of the facilities, will remedy the situation and will take preventive measures for any future actions.
  • We will make efficient use of energy in every process from research, development and design, to procurement, production, sales, distribution and disposal. We will actively commit ourselves to the reduction of environmental burdens including saving of resources, recycling of resources, and the reduction of waste.
  • We will actively participate in the efforts of the company or local communities to preserve the environment and will support their daily efforts to save energy and resources. In addition, we will actively commit ourselves to environment-related tests.
7. Coordination with Local Communities and Promotion of Contribution to the Society

We will actively commit ourselves to the contribution of society, satisfying the needs of the local communities with our interest in social tasks required by the counties and local communities, with our objective to become a corporate citizen that can be trusted by the local communities.

Guideline Items
  • With the understanding that the company is also a member of the local communities and that co-existence with the local communities is the basis of the sustainable development of the company, we will actively participate in the company's contribution to the society.
  • In order to make available to the local communities the talents of individuals, we will commit ourselves to the contribution to society as a member of the local communities.
8. Communications with Stakeholders

Through communications with all of our stakeholders, such as our customers, business partners, shareholders, employees and members of the local communities, we will expand their understanding of NGK group companies and will review corporate activities based on comments forwarded to us and will use them in our effort to accomplish our social responsibilities.

Guideline Items
  • We will respect the culture and practices of each country and region and will use them for our corporate activities as much as possible.
  • We will respond sincerely to comments forwarded from our stakeholders and will continually try to improve ourselves.

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NGK INSULATORS, LTD.