Basic Policy (Fundamental concept)

ISEKI Group will fulfill its responsibilities as a member of society and promote healthy and transparent management.

Compliance system

In accordance with the basic internal control policy, ISEKI Group has established a compliance system based on the ISEKI Group Code of Ethical Behavior and Ethical Code.
ISEKI Group ensures thorough implementation of matters concerning compliance under the leadership of the Compliance Working Group (WG), which consists of departments in charge of the overall management of each division. The Director in charge of Compliance is responsible for the overall management of the WG.The Compliance and Legal Affairs Department is responsible for ensuring that Group employees maintain and enhance awareness toward ethics, and promoting overall compliance activities. The Department also administers the Compliance WG as the Secretariat.
Monthly reports on compliance activities are made to the ESG Committee, which is comprised of Directors and Corporate Officers and chaired by an Independent Outside Director. In addition, the Internal Audit Department audits the status of compliance activities and reports the results to the Board of Directors, the President and Representative Director, Outside Directors, and Audit & Supervisory Board Members.

Activities for compliance training and enlightenment

To raise awareness of each individual employee toward compliance, ISEKI Group is implementing various training programs and enlightenment activities for employees in a planned way.

Activities for enlightenment

Thorough implementation of the “ISEKI Group Code of Ethical Behavior”

The ISEKI Group has established the “ISEKI Group Code of Ethical Behavior,” which defines the rules to be followed by all employees in their daily work. These rules are distributed to all employees to ensure that all employees act in accordance with corporate ethics.

Awareness-raising by issuing “Compliance News”

The Company issues the quarterly “Compliance News” bulletin. With a focus on priority compliance initiatives, it contains information such as messages from the management team and examples of practical measures undertaken by employees. We thus work to raise compliance awareness among employees.

Training activities

Every year, the Company carries out a wide range of training programs concerning compliance themes in the day-to-day conduct of business affairs, especially on points warranting special attention.

Incorporation into company-wide events and rank-based training programs

Training by theme

Whistle-blower system

ISEKI Group has a group-wide whistle-blower system (Ethical Hotline) for the use of all employees, retirees and suppliers. The aim is to enable early detection of problems within the Company and to minimize the impact of corporate crises arising from misconduct and other improper acts. In addition to an internal help desk established in the Compliance and Legal Affairs Department, an external third-party help desk independent from management executives has been set up, in light of the purposes of the Corporate Governance Code. The third-party help desk provides support in multiple languages including not only Japanese, but also English, Chinese, Thai, and Indonesian.
In addition, the whistleblowing system is regularly communicated to all employees. In 2025, there were 38 reports.
The Group responded to these cases while giving due consideration to the protection of the whistle-blowers and the
privacy of the parties involved, and reported their summaries to the ESG Committee.

Initiatives for prevention of corruption

ISEKI Group has established the Basic Rules on the Prevention of Bribery Involving Foreign Public Officers, etc. to prevent
corruption involving foreign public officers, etc. and ensure fair transactions. We work to ensure thorough compliance with the Rules mainly at overseas bases and overseas Group companies. To date, the Group has been subject to no legal action due to corrupt practices.

Initiatives to eliminate anti-social forces

ISEKI Group sets out “severing ties with anti-social forces and organizations” in the “ISEKI Group Code of Ethical Behavior,” stipulates that it will have no relationship whatsoever with them, and thoroughly communicates this policy to all employees. To fulfill our social responsibilities for ensuring sound business operations and eliminating anti-social forces, we have established the Rules for Response to Anti-Social Forces. Under the leadership of Representative Directors, we are working on the creation and enhancement of relevant internal systems in cooperation with
external specialized institutions. Furthermore, we set out specific procedures in the Anti-Social Forces Response Manual and offer continuous in-house education programs to ensure that our officers and employees can respond properly to anti-social forces.

Initiatives for protecting personal information

To ensure proper handling of personal information, ISEKI Group has established and published the “Personal Information
Protection Policy.” In addition, we strive to ensure the proper management of personal information by handling personal
information in accordance with the Personal Information Handling Regulations, establishing appropriate security control
measures, and ensuring compliance with those regulations through regular education and awareness activities for officers and employees. Going forward, we will recognize the importance of the protection of personal information and respect the rights and interests of individuals in both in Japan and abroad by ensuring the proper handling of personal information.