General Rules

1. Corporate Conduct Based on Company Credo

   We as part of the SHIMA SEIKI Group, under our corporate motto "Ever Onward", shall take on as our mission, the challenge to create fascinating products and enrich people's lives through fashion, and to develop innovative technology for that purpose.

2. Compliance with Laws and Business Ethics

   SHIMA SEIKI shall adhere to all laws and respect social rules, earn the trust of society, maintain transparency and act in a healthy manner in all its business activities.

Chapter 1. Business Activities

1. Providing the Highest Quality Products

   SHIMA SEIKI aims to grow together with its customers. Our corporate spirit is "to provide products of the highest quality at an appropriate price" through innovations. Our company contributes to the development of the industry by supporting its needs in advance.

2. Assurance of Product Safety

   Careful attention is paid in all business activities including development, manufacture, and sales, to ensure that safe products and services are provided.

3. Fair Public Relations Activities

   With regard to Public Relations activities, SHIMA SEIKI shall provide accurate factual information and strive to avoid misunderstanding toward customers, stockholders, investors, and other stakeholders.

4. Fair Transaction with Suppliers

   With regard to outsourcing of materials and services, SHIMA SEIKI shall always conduct fair and transparent business transactions with suppliers while observing laws involving subcontracting.

5. Promotion of Fair and Free Transaction

   SHIMA SEIKI observes Antimonopoly Law, Unfair Competition Prevention Law, etc., and provides the highest quality products and services at appropriate prices through fair and free market competition.

6. Proper Export-Import Transaction

   While observing statutes of trade and performing appropriate export-import customs clearance procedures, strict export control shall be performed with special emphasis on security.

7. Fair Accounting Procedures

   SHIMA SEIKI shall observe statutes and internal rules regarding accounting, and shall perform swift and proper accounting procedures and issue accounting reports. SHIMA SEIKI shall strive to improve the transparency of management, and ensure reliability of financial reports.

8. Protection of Intellectual Property Rights

   Original technical development being a principle to which the SHIMA SEIKI Group holds, we shall constantly be aware of the fact that intellectual property rights are a source of corporate-value generation, and shall strive to protect and utilize them accordingly.

9. Prevention of Insider Trading

   We shall not perform transactions of stocks, bonds and securities based on unpublished inside information of the SHIMA SEIKI Group, or other companies whose inside information is disclosed through business transactions.

Chapter 2. Social Responsibility

1. Contribution to Society

   SHIMA SEIKI shall contribute to society through development of socially beneficial products as well as through socially beneficial activities as a corporate citizen of society.

2. Information Disclosure

   SHIMA SEIKI shall strive for fair, timely, appropriate, and continuous disclosure of information about its business conditions and activities, in order to obtain trust and an accurate understanding from stockholders, investors, customers and the local community.

3. Environmental Effort

   To protect the environment, SHIMA SEIKI shall observe environmental laws and actively promote eco-friendly business activities.

4. Compliance with Politics and Laws

   With regards to dealings with government and politics, SHIMA SEIKI shall observe all related statutes, maintain healthy and proper relations, increase its transparency, and avoid any activities that may lead to misunderstanding.

5. Stance Against Antisocial Forces

   SHIMA SEIKI reaffirms its resolute stance against terrorism and antisocial organizations that install terror on society, and shall deny all associations with such organizations.

Chapter 3. Employee Relations

1. Human Rights

   SHIMA SEIKI shall strives to maintain a healthy work environment which respects fundamental human rights and does not discriminate, harass or treat unjustly, any of its employees due to but not limited to nationality, race, principle, religion, sex, age, disability, or social status.

2. Prohibition of Social Harassment

   In order to establish and maintain a positive working environment, SHIMA SEIKI shall prohibit social harassment in the workplace, including all forms of sexual harassment and abuse of power.

3. Privacy Protection

   SHIMA SEIKI shall respect its employees' individual privacy and handle carefully and manage strictly their personal information.

4. Adherence to Company regulations

   SHIMA SEIKI shall observe all company rules and other regulations.

5. Security in the Workplace

   SHIMA SEIKI shall observe Industrial Safety and Health Law and other related laws, to prevent crime and accidents and maintain a safe and positive working environment.

6. Prohibiting Conflict of Interest

   SHIMA SEIKI shall not, without permission through appropriate means, become involved in any activities that create conflict of interest for the SHIMA SEIKI Group.

Chapter 4. Use of Company Property

1. Management of confidential information

   SHIMA SEIKI shall take appropriate measures to manage and prevent leakage of confidential information.

2. Appropriate/Just Use and Management of Company Property

   Company property shall be used and managed appropriately and shall not be used for purpose other than company business.

3. Appropriate/Just Use of Information Systems

   SHIMA SEIKI shall utilize its Information Systems as a tool to increase efficiency of job performance.