Hagiwara Electric Group Business Conduct Charter

Established: December1,2005

Revised: October 1, 2011

Hagiwara Electric Group improves its profitability through sound business activities and aims to return its profits to progressive developments and society. To make it happen, we not only comply with related laws but also make contributions to society as good businesspeople. We strive to earn trust from all those involved, including our stockholders/investors, our customers who are also our close partners, our employees, and our community, so that we can increase our corporate value and take a proactive approach.

1.Customer Satisfaction

We provide useful products, items, and services that exactly match the market needs, satisfy our customers, and earn their trust.

2. Challenging Spirit

We continue to strive for further improvements on a daily basis, and tackle new challenges by trying to be imaginative and creative while, at the same time, overcoming the fear of making mistakes.

3. Fair and Proper Corporate Activities

We conduct our corporate activities in accordance with the law, social norms, and good social sense, and have no relation with any individual or group that disturbs social order or hinders sound business activities.

4. Proper Accounting Procedures

In performing all financial and accounting processes, we adhere to related laws and corporate codes to completely leave out any possible unclear and opaque bookkeeping and have an effective internal audit system in place, so that we have accurate and proper accounting procedures in place.

5.Company Information Delivery

We control our company information in an appropriate manner, disclose such information in the proper way and at the right time, and increase the transparency of our business activities.

6. Global Environment Preservation

We make every effort to preserve the global environment through all our business activities and make contributions to a sustainable development of society.

7.Social Contribution and Harmony with the Community

We aim to contribute to society through our corporate activities and to be good corporate citizens through close cooperation and coordination with local communities.

8. Respect for Human Rights

We respect individual differences, personalities, and characteristics, make no racial, or gender discriminations against anyone, and abuse no human rights. We also condemn any child or forced labor practices.

9. Respect for Our Employees

We respect each employee's personality and characteristics, and make the workplace a welcoming, attractive, and comfortable place.

10.Information Resource Control

We fully recognize our own and others' intellectual property and rights and use those in a fair and proper manner. We also have proper control of information resources including privacy information, customer information, and trade secret information.

11.Making Known and Strictly Observing This Code and Handling Problems

The person responsible for each organization, including top management, recognizes the core of this code is significant to the management and operational continuity and growth of Hagiwara Electric Group, behaves as a role model to maintain the internal system, and tries to advise this code to their peers. In case a grave situation against this code occurs, top management itself tries to solve the problem and takes preventive measures against recurrence of such situations. It also imposes a severe punishment on those involved as well as itself.