Corporate Governance System

At our company, decisions with regard to the “Systems that allow a business group, this company and affiliated companies, to perform business in an appropriate way” as laid out in the Companies Act and the Ordinance for Enforcement of the Companies Act are made at the board of directors.

• ①A system to ensure that the performance of duties by the directors and employees of this company and affiliated companies are in line with laws and ordinance and articles of incorporation
• ②Items related to the preservation and management of information related to the performance of duties by directors
• ③A system for regulations and other provisions related to management of risk of loss for this company and affiliated companies
• ④A system so that the performance of duties of directors of this company and affiliated companies is efficient
• ⑤A system to allow the business group, this company and affiliated companies, to perform business in an appropriate way
• ⑥A system related to an employee when an auditor has requested assistance, and items related to the independence of the referenced employee from the directors
• ⑦A system for reporting to an auditor by the directors and employees of this company and affiliated companies, a system for other reporting to the auditor, a system to ensure that there will be no disadvantageous treatment using the reporting as a ground
• ⑧A system related to the processing of fees, etc., that occur in the performance of duties by the auditor
• ⑨A system to allow the auditor to effectively audit

Information Security

Through the products and services we offer, our company retains important confidential information, like customer information and our own company’s product development information. Information leaks, mishandling or unlawful access can cause harm to our customers or to the trust of our company. To prevent this, we established an “Information Security Policy”, educated all employees about it, and are working to ensure we maintain a strong relationship of trust with customers.

Employee Code of Behavior

Each company in the Shibaura Electronics group, as manufacturers specializing in thermistor temperature sensors that develop and make unique sensors, must be entities that are able to contribute to greater society through sharing of a portion of the profit secured by selling to customers through fair competition. To meet this goal, each company in our group must, based on the 10 following principles and regardless of whether operating abroad or domestically, respect human rights, observe related laws, international rules and their spirit, and act with common sense towards the creation of a sustainable society.

• 1, We will satisfy our customers and gain their trust through developing and offering products that customers need and that are useful to society at large.
• 2, We will engage in fair, transparent and free competition and dealings.
• 3, In addition to our shareholders, we will also communicate with society at large, and we will actively disclose corporate information in a fair manner.
• 4, To ensure our employees work with sincerity, we will ensure that they have a safe and comfortable work environment and we respects their diversity, personality and individuality.
• 5, We will operate while cognizant of the fact that awareness of environmental problems are a necessary requirement in the existence and activity of a business.
• 6, We will actively engage in making contributions to society as good corporate citizens.
• 7, We strongly oppose antisocial forces and groups that threaten the order and safety of society.
• 8, We will operate our international business in a way that, in addition to observing international rules and local laws, respects local culture and customs and makes contributions to their development.
• 9, Top management will remain cognizant of the fact that their role is to implement the spirit of this code, lead by example, enforce this code within the company, and ensure that it is known in group companies and by clients. Additionally, they will maintain an internal structure where they are able to regularly listen to the opinions of those inside and outside the company and act on those opinions while ensuring business ethics are thoroughly observed.
• 10, In the event there are violations to this code of ethics, top management will make clear internally and externally that they are going to resolve the issue themselves, investigate the cause and take preventive steps. Additionally, they will fulfil their responsibility of quickly and accurately disclosing information and providing explanations to the public, will elucidate authorities and responsibilities and will take impartial punitive measures including for themselves.