Principles of Corporate Behavior

Key phrase:

"Customers' perspective"

We have customers of every age and gender, in every country and region. Some of our customers are handicapped. The needs of our customers thus vary widely, and the nature of those needs continues to change as society changes.

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1.1 We will produce quality products and services that reflect universal design principles and will be easy to use for the greatest number of people.

We recognize the importance of providing products and services that reflect universal design principles so that all consumers can use them.

We are committed to universal design, as we believe that we can get more people to use our high-quality products and services if we exercise the utmost care at the product development stage to design products that are easy to use.

1.2 We will foster a culture of learning from our mistakes and will build business processes to prevent problems from recurring, to prevent them from happening in the first place, in order to create value.

We recognize that closing the customer expectation gap-that is, detecting and solving problems early in the product and service life cycle, from the time of purchase to the time of disposal-is what creates value.

We provide high-quality products and services by taking a customer's perspective and using lessons learned from internal and external mistakes to exhaustively identify and quickly resolve all potential customer problems and risks—and not only those related to product quality—throughout the entire product life cycle, from purchase and use to repair and disposal.

1.3 We will continue to provide innovative products and services that benefit society and that have high customer value by conducting R&D and improving our manufacturing capabilities from a customer perspective.

We recognize that providing products and services that exceed customer expectations ultimately funds stronger research, development, and manufacturing.

We seek to create a new connected age of people, things and information by analyzing problems from a customer's perspective and providing them with value through our philosophy of efficient, compact and precise innovation.

1.4 We will remain attentive to customers, respond to them quickly, appropriately and with sincerity and care, and do our best to solve their problems.

"Customer satisfaction" and "being a progressive company" are core values espoused in Epson's Management Philosophy. We strive to live up to these values by ensuring that our actions are always in the best interests of our customers.

We acknowledge and accept social change as well as customer expectations and opinions, and, in doing so, raise the quality of our work and provide products and services that customers trust and love to use.

1.5 We will improve the quality of all work and gain strong customer trust by being mindful that compliance and product safety are top priorities.

We recognize that providing products and services that are safe and secure is our most fundamental obligation and is indispensable if Epson is to retain customer trust.

We consider the safety and security of our customers to be our top priority, and we comply with all local and international laws and regulations concerning product safety and the environment. We will take immediate action to prevent harm or the spread of harm caused by an Epson product.

Key phrase:

"Integrate environmental considerations into our corporate activities"

Our business activities rely on environmental resources, and the fact is that our business activities impact the environment.

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2.1 Harmony with the environment is one of the highest priorities of the Epson Group's management. When conducting business activities, we will keep future generations in mind, and consider how they might best be sustained.

As stated in the Epson Management Philosophy, we are committed to sustainability and to addressing environmental problems as social issues of the highest priority.

We squarely face environmental problems and conduct business in ways that will benefit future generations and achieve sustainability.

2.2 We will strive to minimize our own as well as society's environmental impacts across the entire life cycle of our products and services, from manufacturing to transport, use, and disposal.

We recognize that our products and services impact the environment at every stage of their life cycles.

We as individuals conduct our affairs with thought to the environmental impacts of our actions, in every facet of business activity.

2.3 We will participate in environmental preservation and restoration projects as a member of society.

We believe that, to build and maintain trust, it is important that every employee maintain environmental awareness.

We will continue to actively participate in environmental conservation and restoration efforts that meet the needs of local communities around the globe.

2.4 We will promote environmental awareness and provide information to our employees to enhance their understanding of environmental issues.

We recognize that our business activities and way of life depend on a healthy environment, so we do not see environmental action as a job for someone else.

We will act in a way that reflects environmental awareness and will proactively participate in awareness-building activities and environmental education.

Key phrase:

"Synergies between individuals and our organization"

We can deliver greater value to our customers by working as a team. To do so, we have to build relationships of mutual trust and bring company policies and personal beliefs into alignment.

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3.1 We will instill in our employees, and practice, the ideals of our Management Philosophy.

For us, the Management Philosophy presents a vision of how we want to be as a company.

We understand and practice the values outlined in the Management Philosophy, which seeks to make Epson an indispensable company. This forms the basis for maximizing personal growth, free and vigorous discussion, and teamwork.

3.2 We will put Epson in the best position by hiring a diverse workforce and utilizing their unique skills effectively.

We recognize that human resources are an important asset for achieving the Management Philosophy and that mutual respect is essential for maximizing strength as an organization.

We understand and fulfill the roles of the organizations to which we belong, and we also engage and fully cooperate with other organizations.

3.3 We will respect the individuality of employees and maintain relationships between the company and employees based on trust.

We consider communication among supervisors, subordinates, and team members to be important for achieving alignment with Epsons strategic direction.

We encourage diversity, respect one another's individuality, and engage in honest dialog and constructive debate. Through this, we take the initiative to achieve goals.

3.4 We will develop our employees by creating systems that allow individuals to utilize their skills effectively.

We recognize the importance of continuous efforts to learn and improve one's capabilities in order to deliver unique value through innovative and creative solutions, as stated in the Management Philosophy.

We harbor dreams of self-realization while also continuing to better ourselves, take on difficult challenges, and grow as members of the Epson team.

3.5 We will state and share the purpose and objectives of actions, show proof that objectives have been achieved, and align the actions of the company and the individual.

We recognize that it is important to embrace the Management Philosophy, align our perspectives with the direction and priorities of the company, respect the individual, and engage in constructive dialog.

We clearly and frequently communicate the Management Philosophy, the company's purpose, the goals of actions, targets, and proof of target achievement to gain the understanding of others and to turn knowledge into action.

3.6 Everyone in the organization will understand the purpose of actions, their role, and work as a part of a team.

We understand the entire process of creating, producing, and continuously delivering value, know our role within the process, and recognize the importance of contributing to teamwork to meet our customers' needs.

We think about what is best for all rather than what is best for the individual so that we may contribute to society. We remain aware at all times of the impact that our words and actions have on those around us, and we demonstrate a strong sense of responsibility and ethics in order to increase our collective strength and contribute as a team.

3.7 We will embrace a culture in which objectives are achieved by involving others, discussing issues until a mutual understanding and consensus are reached, and building and maintaining mutual trust.

We recognize that it is essential to tear down barriers between individuals and organizations, build an environment that breeds mutual respect and trust, discuss issues openly, and harness our collective strength to create and continuously deliver customer value.

We take initiative, ownership, and encourage the engagement of others. We actively involve other relevant stakeholders, generously cooperate with other departments and other people, and engage in constructive discussions based on trust.

3.8 We will create a culture in which employees take pride in their work, work with confidence and actively promote teamwork.

We believe that organizational culture is not something you're given but something all of us who work at Epson create.

We will create an organizational culture that, rather than focus on individual accomplishments, encourages free and vigorous discussion so as to further build on strengths and maximize our organizational strength as a collective entity of self-directed employees.

Key phrase:

"Work environment"

"Work environment" refers not only to the environment in the workplace but also the impact that it has on our private lives. There needs to be a good work-life balance.

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4.1 We will not tolerate any violation of human rights.

We believe that we must respect basic human rights and actively work to eliminate all forms of discrimination around the world.

We will be attentive to the human rights of all and remain vigilant to ensure that we are not party to human rights abuses.

4.2 We will not engage child labor or forced labor.

We believe that we must act to eradicate both child labor, which deprives children of an opportunity for education, and forced labor, in which people are paid less than minimum wage or not at all.

We act to ensure that we are not in a position to further the use of child labor or forced labor when we select business partners in the supply chain and when we choose companies in which to invest.

4.3 We will promptly take corrective action against undesirable behavior including any harassment, violence, devaluation of the individual or any behavior resulting in loss of trust.

We do not under any circumstances tolerate harassment, bullying, violence, or other actions that harm or disparage an individual or their character, cause them to lose motivation or confidence in their work, or deprive them of hope.

We reject harassment, bullying, and violence, ensure that the dignity and human rights of every individual are respected, and seek to promote a vibrant workplace that raises motivation. We do not neglect people who are in a weak position.

4.4 We will eliminate any forms of discrimination against gender, nationality, religion, race and disability.

We recognize that we work with people of different nationalities, religions, races, disabilities, genders, gender identities, and sexual orientations.

We respect human rights and treat all individuals fairly regardless of nationality, religion, race, disability, gender, gender identity, or sexual orientation. We are conscious of conducting ourselves in a way that demonstrates understanding and respect for the culture, customs, and history of the countries and regions where we operate.

4.5 We will support employees by facilitating a proper work-life balance.

We understand that work sustains our livelihoods and provides a sense of achievement and satisfaction. On the other hand, we also believe that our private lives are important and that their work-life balance leads to fulfillment.

We respect the values of our people and enable them to preserve a healthy work-life balance so that they can enjoy happy, fulfilling lives at home and at work during every stage of their lives.

4.6 We will adhere to and maintain the proper health and safety standards at all sites around the world.

We observe the fundamental rules of occupational safety and disaster prevention, aiming to create a positive work environment where all employees can work in a safe, healthy, and secure environment. We maintain a commitment to protecting our own workplace and to ensuring our own safety.

We commit to working together as a unified team, prioritizing not only efficiency and cost but also striving to eliminate all occupational accidents, industrial incidents, and work-related illnesses.

4.7 We will support the efforts of employees to monitor and improve their mental and physical wellbeing.

We recognize that mental and physical wellbeing significantly influence productivity and are essential if employees are to maximize their potential and if the organization is to prosper.

We pay attention to our own mental and physical wellbeing as well as to that of our coworkers, and we take action to improve, maintain, and promote our health. We also take steps to promote good communication and strong teamwork to establish a healthy, dynamic workplace.

4.8 We will establish practices that create a fair and open work environment and build a corporate culture that values individuals' rights and that facilitates equal opportunities for all.

We believe that fair and reasonable working conditions and working environments stimulate and challenge employees, leading to higher performance.

We acknowledge and praise one another's accomplishments and work ethic, and we aim to create a workplace that fosters incentive for further achievement.

Key phrase:

"Corporate governance and internal controls"

Building mechanisms for observing rules is important, but we have to practice ethical behavior to ensure that the mechanisms function properly.

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5.1 We will establish and maintain an effective system which governs our corporate entities and internal controls to ensure that management is transparent, fair, agile, and decisive.

For corporate governance and internal controls to function effectively, we believe it is important to understand the systems and their purpose and to conduct ourselves accordingly.

We strictly observe the motto "keep promises, tell the truth, and maintain transparency" as a guide to action. We fully grasp and accurately report situations, never twisting interpretations to suit our needs, conceal misconduct, or alter data.

5.2 We will implement systems of compliance to ensure that we observe and respect all applicable laws and regulations, internal rules, and business ethics, and will respond to the needs of society.

We have sites around the world to manufacture and sell a diverse range of products, and we thus believe that all employees should be conscious of complying with all applicable laws, regulations, and internal rules and of responding to the needs of society.

We incorporate applicable laws and regulations into our internal rules, and we observe them along with business ethics under a global compliance system that covers the entire Epson Group.

5.3 We will establish whistleblower systems that can be used anonymously to report concerns of violations of laws and regulations, internal rules or of business ethics. We will not tolerate any retaliation against whistleblowers who report for justifiable reasons.

We believe employees must be able to report their concerns without hesitation if we are to maintain compliance with laws and regulations, internal rules, and business ethics. It is therefore necessary to have systems in place that employees can use to report their concerns anonymously and that protect them from retaliation.

When we notice or suspect compliance violations, we promptly report the facts to a supervisor or via reporting channels. Individuals who make justifiable reports are protected from retaliation of any kind.

5.4 We will not tolerate any form of bribery, corruption, dishonest marketing, cartels, insider trading, or conflict of interest. We will conduct all transactions in accordance with these principles, promoting fair and open competition in the marketplace.

We believe that we must understand and be conscious of Epson's social responsibilities and must conduct sound, appropriate business operations by conducting fair, transparent transactions under free market competition.

We do not seek profit by improper means such as bribery or cartel involvement, nor do we engage in insider trading, conflicts of interest, or other unfair or non-transparent acts. Moreover, we immediately investigate and respond to any allegations of improper transactions.

5.5 We will maintain a good, mutually cooperative relationship with governments and their administrative bodies. We will not make company donations of any kind to politicians or political parties, nor will we participate in events or campaigns aimed at political fundraising.

We believe that maintaining wholesome relationships with political and governmental bodies is essential for the healthy development of enterprise and society. For this reason, we believe it is necessary to maintain transparent relationships with political parties and public agencies.

We respect the practices and cultures in countries and regions around the world but, at the same time, we do not seek to engage in improper relationships with political, governmental, or other public entities in return for special favors. We also emphasize ethics and conduct ourselves so as not to invite public misconceptions.

5.6 We will not involve ourselves in or have contact with any anti-social movement or group that promotes activities that are illegal or threatening to public order and safety.

We consider the rejection of criminal and terrorist organizations to be an important social issue.

We do not associate with criminal or terrorist organizations. If we were to unknowingly develop an association with criminal or terrorist organizations, we would immediately report it to relevant organizations and authorities.

5.7 We will establish a system to investigate the source of minerals used in our products and supply chain and will take actions to responsibly source minerals to avoid using any minerals that could be involved in human rights abuses, conflicts or environmental degradation.

We consider the elimination of minerals that contribute to human rights abuses, conflicts, and environmental degradation to be an important global issue.

We will establish a reporting system to determine the source of minerals used in products and engage suppliers in this effort. We make every effort to avoid using in our products supply chain minerals that contribute to human rights abuses, conflicts, and environmental degradation.

5.8 We will employ best practices in risk management to prevent risks from materializing and minimize impact in cases where they do materialize.

We believe that we must remain conscious of business risks, heighten our sensitivity, prevent risks from materializing, and minimize their impact if they do materialize.

We strive to avoid risk exposure in our own workplaces, but if a risk event does materialize, we quickly and effectively respond across organization lines to limit its consequences on the business of the Group.

Key phrase:

"Safety and security of people and company assets"

Our businesses rely on our people and assets. The physical and information security of these assets needs to be protected.

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6.1 We will establish and maintain systems to ensure the safety and security of Epson personnel, as well as visitors or contractors on our premises.

To ensure the safety of all employees and visitors, we think it is important to predict, prepare for, and address risks.

We actively take action to enhance safety by sharing near-miss stories as well as actions and situations that threaten safety.

6.2 We will carefully handle all group tangible and intangible assets (financial, intellectual, and those regarding infrastructure, brand, and proprietary information) and respect the assets of others.

We recognize that weak asset management exposes a company to damage, loss, theft, and misuse of assets, and these can cause a company to lose trust.

We remain aware of all asset regulations and manage our assets appropriately. We keep track of tangible assets on the basis of physical checks. Furthermore, we respect the intellectual assets, brand assets, and information assets of other parties.

6.3 We will take reasonable and necessary precautions to protect the confidentiality of proprietary business information including the privacy of customers, employees and other stakeholders.

We recognize that we are accountable at all times for ensuring that confidential information (including personal data) that customers have entrusted us with is handled fairly.

We understand and follow rules for the proper handling of confidential information throughout its life cycle (from creation or acquisition to use, storage and destruction) so that it is not inadvertently, intentionally, or maliciously leaked.

6.4 We will only use our company assets (all forms stated above) for appropriate business purposes. Unauthorized use will not be tolerated.

We conduct ourselves with the belief that assets should always be managed by all employees and not only by certain individuals at certain times.

We strive to prevent the loss, theft, and misuse of company property.

Key phrase:

"Ask to live up to the highest standards of ethical conduct"

Hold our business partners to the same strict standards as Epson with regard to compliance with laws and maintenance of human rights, suitable labor conditions, the environment, ethics, quality, and information security.

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7.1 We respect the autonomy of our business partners and strive for mutual benefit.

We believe that it is essential to collaborate with all business partners involved in the value chain to meet customer expectations.

We, as Epson employees, engage business partners responsibly and in good faith and contribute to the realization of social sustainability.

7.2 We hold our business partners to the same strict standards that Epson upholds with regard to human rights, labor conditions, the environment, compliance, ethics, information security, and quality. We support their endeavors towards improvement as needed.

We recognize that human rights, labor conditions, the environment, compliance, ethics, and information security are considerations when selecting products and services.

In business, we comprehensively evaluate all of these in addition to quality, cost, and delivery. We also collaborate with our business partners to solve problems where necessary.

7.3 We refrain from engaging in illegal or unethical business practices in our relationships with business partners, and we require our business partners to adopt a similar approach in their dealings.

We not only adhere to legal regulations but also respect industry norms and socially recognized fair business practices. We also expect our business partners to comply with these rules and maintain proper relationships.

We do not depend on entertainment and gifts to facilitate business. We also ask this of our business partners.

Key phrase:

"Actively contribute"

We recognize that businesses are expected to demonstrate a commitment to society and that we have to actively communicate and contribute to society through various programs.

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8.1 We respect the cultures and traditions of the countries and regions in which we operate.

We recognize that it is important to conduct business in a way that contributes to the advancement of society while respecting community cultures and established practices.

We think carefully from a customer perspective, and we learn about and understand community cultures and practices. We strive to engage in business activities that are appropriate for the region.

8.2 We will engage in open dialogue within our communities and actively contribute to them.

We believe that we must actively contribute to society as a good corporate citizen to ensure the growth and prosperity of society and business.

We engage in activities from a broad perspective by promoting communication with government, NPOs, and NGOs, as well as through community engagement activities. We actively use our Epson technology and expertise to give back to society.

8.3 We nurture a culture in which our employees are encouraged to participate in volunteer programs and other activities as members of society.

We believe we should aspire to help society as citizens of our communities.

We as individuals think of ways to contribute to society, and we actively participate in volunteer activities.

Key phrase:

"Honest dialog"

We need to proactively provide socially responsible people with information they need, including negative information, and to maintain communication that goes both ways.

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9.1 We will respect other cultures and traditions while striving to engage in principled, ethical communication.

We recognize that communications with people within and outside the company have an important impact on Epson's credibility, corporate value, and brand.

We produce communications that are consistent, take into account cultural diversity, and are free of words and actions that are discriminatory, indecent, or offensive in nature.

9.2 We will communicate openly and honestly with our stakeholders, and will establish appropriate systems for the disclosure of information.

We, as members of a progressive company, recognize that we must report the true state of the company to stakeholders in a timely manner.

We do not falsify, hide, or unduly delay the release of negative information to stakeholders but accurately and fairly convey the true state of the company.

9.3 We will utilize appropriate and useful tools to communicate information to our stakeholders.

We believe that the communications we produce should be based on a solid understanding of the characteristics of each type of media and should be ethical and reflect our awareness as good citizens.

We take precautions to avoid leaking nonpublic information of the company or issue inappropriate information that would harm the brand of another company, and we carefully check information to ensure that it is accurate and understandable to stakeholders before releasing it using appropriate communication channels.

9.4 We will provide opportunities and establish appropriate systems to engage in dialogue with stakeholders.

We recognize that all our public words and actions, and not just those made on the job, may be seen as part of Epson's communication activities.

As employees we are aware that we are seen as company spokespersons, and we engage in constructive dialog that can earn understanding and trust in Epson and help to increase corporate value.

9.5 We will utilize the opinions and suggestions of our stakeholders as a vital resource for corporate management.

We recognize that communication with stakeholders is essential for Epson's sustainable growth and for increasing corporate value over the long term.

We listen humbly to criticisms, concerns, opinions, ideas, and assessments of stakeholders, and we share this feedback internally in a timely manner.

Key phrase:

"Integrity and effort" and "Creativity and challenge"

The spirit of "integrity and effort" and of "creativity and challenge" are values we have embraced since the company was founded.

We must observe and pass down these values through conduct that reflects the Principles of Corporate Behavior.

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We recognize that we must always broaden our minds, squarely face the expectations of society and our customers with integrity, and change ourselves to adapt to changes in the world and changes in the needs of our customers.

We take a broad, global view of the social, market, and competitive landscape, objectively understand what is expected of us, respond with integrity to those expectations, and set goals and execute plans to meet them. We are mindful of exerting earnest effort and bettering ourselves to build on our strengths and overcome our weaknesses, and we continuously undertake innovative challenges that create customer value.