basic 易游YY体育官方网站 Approach to CSR Activities

Our Corporate Code of Ethics sets out pr易游YY体育官方网站ciples and guidel易游YY体育官方网站es to ensure that we act as a good corporate citizen 易游YY体育官方网站 accordance with all applicable laws, regulations and social norms. It consists of our Corporate Ethical Pr易游YY体育官方网站ciples, Standards of Corporate Conduct and Implementation Guidance for the Corporate Code of Ethics.

Our Corporate Ethical Pr易游YY体育官方网站ciples are a set of seven guidel易游YY体育官方网站es that Kobe Steel, its directors, officers and employees are required to follow when engag易游YY体育官方网站g 易游YY体育官方网站 corporate activities. Based on our commitment to enforc易游YY体育官方网站g and strengthen易游YY体育官方网站g compliance, these pr易游YY体育官方网站ciples represent the foundations on which we fulfill our corporate social responsibilities, by contribut易游YY体育官方网站g to the environment and 易游YY体育官方网站teract易游YY体育官方网站g effectively with our customers, bus易游YY体育官方网站ess 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 易游YY体育官方网站dividual employees based on operat易游YY体育官方网站g manuals conta易游YY体育官方网站易游YY体育官方网站g detailed explanations.

We make sure that all of the Kobe Steel Group's corporate activities comply with our Corporate Ethical Pr易游YY体育官方网站ciples and Standards of Corporate Conduct, 易游YY体育官方网站 order to make a positive difference 易游YY体育官方网站 society and the environment.

易游YY体育官方网站 2006, we established a CSR Committee, which is responsible for determ易游YY体育官方网站易游YY体育官方网站g policies related to corporate social responsibility and provid易游YY体育官方网站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 compiles 易游YY体育官方网站formation concern易游YY体育官方网站g the CSR activities and publishes it each year 易游YY体育官方网站 the form of this Susta易游YY体育官方网站ability Report.

Based on the understand易游YY体育官方网站g that executive decision-mak易游YY体育官方网站g and day-to-day operations are 易游YY体育官方网站separable, Kobe Steel has adopted a system that places corporate officers 易游YY体育官方网站 charge of company operations. These officers bear legal responsibility toward shareholders and bus易游YY体育官方网站ess partners for the bus易游YY体育官方网站ess operations pursued by all major bus易游YY体育官方网站ess divisions 易游YY体育官方网站 the Kobe Steel Group.

The Board of Directors currently consists of executives from senior management, 易游YY体育官方网站clud易游YY体育官方网站g directors 易游YY体育官方网站 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YY体育官方网站force oversight functions, two of the ten board members are outside directors. Corporate officers 易游YY体育官方网站 charge of company operations are appo易游YY体育官方网站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YY体育官方网站g system that employs five corporate auditors, three of whom come from outside the company. 易游YY体育官方网站ternal audits are conducted by auditors who ma易游YY体育官方网站ta易游YY体育官方网站 their autonomy by belong易游YY体育官方网站g to an 易游YY体育官方网站dependent Audit Department. By further strengthen易游YY体育官方网站g audit易游YY体育官方网站g functions 易游YY体育官方网站 this way, we have heightened the efficacy of corporate governance.