Chapter 2: Implementing the Code in Business Operations
I-1. Research and Development
(1) Research and Development for a Better Future
Through research and development we aim to achieve a better future. At the same time, we will try to prevent our technologies from being used in any way that might jeopardize the global environment, world peace, social justice or humanitarian activities.
(2) Developing Products People Want
We are committed to developing products that will enrich the lives of our customers by continually taking into account customers’ opinions and changing societal needs and by observing how people live and interact with our products.
We will strive to develop products that provide ever increasing satisfaction to our customers based on their quality, performance, design, affordability, environmental consciousness and ease of use, and that are accessible to a wide range of people, regardless of age or ability.
(3) Respect for Intellectual Property Rights
We will secure and protect intellectual property rights for our R&D achievements, while at the same time promoting the responsible use of our technologies around the world.
We will respect the intellectual property rights of others. At the same time, we will strive to prevent or eliminate any infringements of our own rights.
(4) Open Standards
In unifying existing standards and establishing universal standards, we will seek to ensure maximum benefit for our customers worldwide, while fairly disclosing all relevant information and constructively promoting our business activities.
(1) Fair Transactions on an Equal Basis
In the procurement of both goods and services, we will seek fair relationships with our suppliers based on mutual trust and respect.
(2) Selection of Suppliers
We will offer equal opportunities to potential suppliers around the world. Selection will be based on fair and objective evaluations as to each potential supplier's ability to meet our criteria concerning the safety of goods and services, environmental impact, quality, competitive pricing, and meeting agreed delivery dates and times, as well as compliance with applicable laws and social norms. Also, suppliers' support of our Basic Business Philosophy and this Code of Conduct will be evaluated positively.
(3) Fair Procurement Activities
In implementing procurement, we will act ethically and abide by all applicable laws and regulations. We will not receive any personal benefit from suppliers.
(1) Contributing to Society
We will constantly remember that our mission is to contribute to society through manufacturing and to create added value for society. At the same time, we will continually improve the environmental performance of our manufacturing operations.
(2) Safety and Quality of Products
In addition to complying with applicable laws and regulations, we will give utmost priority to product safety and continue working to maintain and further improve product quality.
(3) Customer Satisfaction
Through our continual efforts to globally improve productivity and reduce costs, we will pursue the manufacture of products with the highest-level quality at reasonable price. We will develop flexible manufacturing and delivery systems in response to our customers' need for reliable and timely supply.
I-4. Marketing & Sales
(1) Creating New Markets
We will make every effort to understand what customers want and need so that we can actively propose the development of and promote leading-edge products and services that will usher customers into a new age.
(2) Exceeding Customers' Expectations
Whenever we meet customers, we will remember that each of us represents the Company. We will respond to customers modestly, sincerely and graciously, expressing our gratitude to them, while endeavoring to be accurate and speedy in our responses.
In particular, we will do our best to meet and exceed our customers' expectations by supplying the products and services they want and need in a timely manner and by appropriately addressing their complaints. To this end, we will properly protect all customer information.
(3) Marketing Compliance
No matter how severe the competition may be, we will pursue fair and ethical marketing activities in compliance with all applicable laws and regulations. In other words, we will never violate any laws, regulations or social norms in pursuit of greater sales or profit.
We will not engage in bribery, collusion on bids, price fixing or other cartel activities.
We will take appropriate measures for export control to ensure that our products and technologies will not be misappropriated as tools that could threaten peace and security.
I-5. Public Relations and Advertising
Through our corporate communications, comprising our public relations and advertising activities, we will provide fair and accurate information on our basic business policies, as well as on our products, services and technologies, with the aim of better informing our customers and other stakeholders, thereby enhancing the value of our brands. At the same time, we will continually listen to and observe the public, to learn from them and reflect their opinions in our business, marketing and merchandising activities.
(2) Fair Content and Expressions
We will not make representations that are deceptive, misleading, fraudulent or unfair. Our advertisements shall not be defamatory or of a political or religious nature.
(3) Creativity and Innovation
We will aim to develop and demonstrate both our creativity and innovation in our corporate communication activities and impress on consumers that they can trust our brands.
II-1. Coexistence with the Global Environment
(1) Realizing a Sustainable Society
We are committed to creating value from an environmental perspective through our business activities and to conducting business in ways that contribute to sustainable economic development compatible with environmental preservation.
We will take initiatives to reduce potentially adverse environmental impacts of our business, such as initiatives to: reduce global warming; effectively use limited resources; properly manage chemical substances; efficiently use and prevent contamination of water; and be mindful of the diversity of life.
We will disclose to the public our environmental initiatives and achievements in order to obtain their understanding in, and sympathy with, such initiatives and to disseminate them.
(2) Development of Environmentally Responsible Products and Services
We will pay attention to the environment in all processes of research and development, product planning, and product design in order to create and disseminate products and services which capitalize on our strength in environmental technology.
(3) Our Efforts across All Manufacturing Processes
We will continue in our aim of reducing adverse environmental effects and concurrently improving productivity across all manufacturing processes, such as product planning, procurement, manufacturing, sales, logistics, and recycling.
(4) Increasing Environmental Awareness
We will strive to increase the environmental awareness of our employees through enlightenment activities in order to promote environment oriented operations at all business areas, units, and levels. We will also improve communications with business partners and local communities and work with them to address environmental challenges.
II-2. Product Safety
(1) Priority on Safety
We will give the utmost priority to product safety in all design, development, manufacturing and marketing and sales activities. We will also strive to ensure safety in all our related activities, ranging from product installation to after-sales maintenance and repair.
(2) Provision of Information
To ensure that our products are used properly, thus preventing possible accidents, we will appropriately provide our customers with easy-to-understand instructions and explanations about proper operation and safe use.
We will disclose information of our environmental initiatives.
(3) Post-accident Measures
If we receive information regarding the safety of our products, we will investigate promptly to identify the cause(s). If we conclude that there may be a safety problem, we will cooperate fully and transparently with public authorities, taking prompt action where necessary to remove serious threats to public health and safety and to prevent any recurrence.
II-3. Compliance with Laws, Regulations and Business Ethics
(1) Compliance with Laws, Regulations and Business Ethics
We will conduct business with integrity, a law-abiding spirit, and the highest ethical standards.
We will fulfill our tasks by always observing not only applicable laws and regulations, but also the highest standards of business ethics. Compliance with laws, regulations and business ethics in all our business activities is essential to the survival of our business.
(2) Fair and Sincere Action
We will respect free and fair competition, and abide by all applicable antitrust (competition law) and other laws and regulations. All of our transactions shall be properly and fairly recorded.
We will not engage in bribery of any kind. We will be sensitive to, and shall abide by laws and regulations and social ethics that govern the offer of benefits of any kind, including gifts, meals and entertainment. In the same manner, we will not receive personal benefits from any of our stakeholders.
Moreover, we remain steadfast in our attitude to oppose any illegal group or organization.
(3) Thorough Observation of Relevant Laws and Regulations
To ensure that all employees observe applicable laws and regulations and respect their spirit, we will establish appropriate in-house codes and promote employee understanding through seminars and training.
(4) Prompt Redress and Strict Treatment for Violations of Laws and Regulations
If we suspect that our activities violate applicable laws, regulations or business ethics, we will report such information to a superior, or to the legal affairs section or other relevant section, or via an in-house notification hotline. Whistleblowers shall be protected from dismissal, demotion, or any other retaliatory treatment because of their well-intentioned reporting of possible violations of any law or regulation. We will ensure thorough and confidential treatment of information reported.
Once we have established that a law or regulation has been violated, we will immediately seek to remedy the violation, take appropriate action and prevent it from recurring.
II-4. Use and Control of Information
(1) Effective Use of Information
We will use our IT resources effectively and efficiently to collect, store, control, use, protect and dispose of management, technological, personal and other useful information so that it can be properly and effectively used without jeopardizing confidentiality.
(2) Information Security
We will endeavor to prevent any piracy or falsification, and prevent leakage of our information.
(3) Information Received from a Third Party
When we receive confidential information from a third party we will respect its confidentiality and afford it appropriate protection.
(4) Handling of Personal Information
Recognizing the importance of protecting personal information, we will gather, store, control, use, process and dispose of personal information appropriately in compliance with relevant laws and regulations. We will also seek to prevent the loss, falsification, or leakage of such information.
II-5. Information Disclosure
(1) Basic Approach to Information Disclosure
We will provide our various stakeholders, including customers and shareholders, with fair and accurate information on corporate financial affairs, our Basic Business Philosophy, business policies and activities, as well as corporate social responsibility activities, in a timely, understandable and appropriate manner. At the same time, we will listen to our customers' requests and comments and reflect them in our business policies and activities. We will seek to be an enterprise with high transparency.
(2) Compliance with Applicable Laws and Regulations
Our securities have been listed on securities markets in several countries and regions. Accordingly, we will abide by all applicable securities and information disclosure-related laws and regulations of appropriate countries and regions. We will never engage in insider trading or other transactions using inside information.
(3) Disclosure Methods
In addition to information whose disclosure is required by securities-related laws and regulations of relevant countries and regions, we will disclose other information following proper internal control procedures, so as to ensure that the information we disclose is fair, accurate, sufficient and timely.
II-6. Corporate Citizenship Activities
(1) Corporate Citizenship Activities
Recognizing that our Company is a member of society, in order to create a better society we will carry out corporate citizenship activities, such as coexistence with the environment, personal development and education, art and cultural promotion, social welfare, and support for and partnerships with non-profit organizations and non-governmental organizations. Through these activities we aim to help create a healthier, more prosperous society.
(2) Coexistence with Local Communities
Recognizing that our Company is a member of the local community, we will endeavor to work and prosper in tandem with the local community.
We will actively cooperate with the local community and participate in its activities. In particular, we will carry out corporate citizenship activities benefiting the community to promote such areas as art, culture and sports, as well as the environment. Also, we will work to meet the needs of the local community by making company facilities available and holding events open to the public when possible.
When a large-scale disaster such as a natural calamity takes place, we will cooperate with the parties concerned and swiftly take necessary supportive action.
(3) Donations, Sponsorships and Support for Public Service Organizations
To help alleviate social problems and contribute to society, the Company will make appropriate donations and sponsor activities. The Company will also provide support for public service organizations, including the foundations and funds that it has established.
(1) Our Approach to Our Brand
We will seek to strengthen the bond with customers around the world through promoting our vision expressed in, and through appropriate use of, the Panasonic brand, which we see as an expression of our commitments to our customers as well as proof of their trust and satisfaction.
(2) Panasonic Brand Identity
We will dedicate ourselves to realizing the promise expressed in the Brand Slogan – ‘A Better Life, A Better World’, namely, to continuously contribute to the evolution of society and the happiness of people around the globe.
Moreover, we will strive to further our business keeping in mind the following three values:
We continually create new value with a constant awareness of emerging trends and global issues such as the environment, exceeding customers’ expectations through our creativity and ingenuity.
We continually strive to translate our vision into quality products and services that enable customers to live the life they aspire to.
We build solid relationships with customers by providing value that truly satisfies.
(3) Optimal Products and Services that Enhance Our Brand Value
We will strive to maintain and enhance the value of the Panasonic brand through our untiring efforts to create products and services which benefit our customers.