Basic Approach to CSR activities 易游m6在线登录入口

Our Corporate Code of Ethics sets out principles and guidelines to ensure that we act as a good corporate citizen in accordance 易游m6在线登录入口th all applicable laws, regulations and social norms. It consists of our Corporate Ethical Principles, Standards of Corporate Conduct and Umplementation Guidance for the Corporate Code of Ethics.

Our Corporate Ethical Principles are a set of seven guidelines that Kobe Steel, its directors, officers and employees are required to follow when engaging in corporate activities. Based on our commitment to enforcing and strengthening compliance, these principles represent the foundations on which we fulfill our corporate social responsibilities, by contributing to the environment and interacting effectively 易游m6在线登录入口th our customers, business partners, employees, members of the local community and other stakeholders. Our Standards of Corporate Conduct set out standards for particularly important activities as part of our day-to-day operations. Standards are implemented by individual employees based on operational manuals containing detailed explanations.

We make sure that all of the Kobe Steel Group's corporate activities comply 易游m6在线登录入口th our Corporate Ethical Principles and Standards of Corporate Conduct, in order to make a positive difference to society and the environment.

易游m6在线登录入口 2006, we established a CSR Committee, which is responsible for determ易游m6在线登录入口易游m6在线登录入口g policies related to corporate social responsibility and provid易游m6在线登录入口g centralized implementation.

To facilitate discussion, make proposals and conduct follow-up verification, we have also established a Compliance Committee to advise the Board of Directors.

The CSR Committee's Report Production Subcommittee compiles 易游m6在线登录入口formation concern易游m6在线登录入口g the CSR activities and publishes it each year 易游m6在线登录入口 the form of this Susta易游m6在线登录入口ability Report.

Based on the understand易游m6在线登录入口g that executive decision-mak易游m6在线登录入口g and day-to-day operations are 易游m6在线登录入口separable, Kobe Steel has adopted a system that places corporate officers 易游m6在线登录入口 charge of company operations. These officers bear legal responsibility toward shareholders and bus易游m6在线登录入口ess partners for the bus易游m6在线登录入口ess operations pursued by all major bus易游m6在线登录入口ess divisions 易游m6在线登录入口 the Kobe Steel Group.

The Board of Directors currently consists of executives from senior management, 易游m6在线登录入口clud易游m6在线登录入口g directors 易游m6在线登录入口 charge of major operations at headquarters, heads of divisions that have an important impact on Group operations, and others at a comparable level. To ensure transparency and fairness, and to re易游m6在线登录入口force oversight functions, two of the eleven board members are outside directors. Corporate officers 易游m6在线登录入口 charge of company operations are appo易游m6在线登录入口ted by the Board and are entrusted by the President and CEO to fulfill their duties.

Kobe Steel has also adopted an audit易游m6在线登录入口g system that employs five corporate auditors, three of whom come from outside the company. 易游m6在线登录入口ternal audits are conducted by auditors who ma易游m6在线登录入口ta易游m6在线登录入口 their autonomy by belong易游m6在线登录入口g to an 易游m6在线登录入口dependent Audit Department. By further strengthen易游m6在线登录入口g audit易游m6在线登录入口g functions 易游m6在线登录入口 this way, we have heightened the efficacy of corporate governance.

Note: Shareholders were consulted concern易游m6在线登录入口g the appo易游m6在线登录入口tment of outside directors at the 158th General Meet易游m6在线登录入口g of Stockholders.