Corporate GovernanceCorporate Governancehttps://www.sho-bondhd.jp/english/csr/governance/

Method of Evaluating Effectiveness of the Board of Directors

The SHO-BOND Group positions corporate governance as one of the highest management priorities to realize our corporate philosophy “With a sense of
mission of ‘Inheriting and passing on social infrastructure to the next generation in good condition,’ we will contribute to the realization of a safe and affluent
society by utilizing our advanced technological development capability as a leading company in the structure maintenance business.”
By fulfilling our social responsibility as a company that specializes in the maintenance business, we will work together with our shareholders and all otherstakeholders to achieve sustainable growth and enhance our corporate value over the medium to long-term. In addition, we will aim for a highly sound andtransparent management by developing and promoting a corporate governance system that enables swift and decisive decision-making.

To evaluate the effectiveness of the Board of Directors, a third-party external adviser is used in order to ensure objectivity every other year. The evaluation is
performed by asking all directors, including members of the Audit and Supervisory Committee, to complete self-evaluation questionnaires. The Board of
Directors reviews the one-year efforts to address the recognized issues, and conducts self-analysis and evaluation in the year after the evaluation byquestionnaire.

■ Summary of Evaluation Results

Progress in Strengthening Corporate Governance
Date

Event

January 2008

Transitioned to the holding company system

September 2015

Transitioned to a company with an Audit and Supervisory
Committee and shortened directors’ term of office to one year

September 2017

Increased the number of Outside Directors to three

July 2018

Started evaluating the effectiveness of the Board of Directors

November 2018

Established the Nomination and Remuneration Advisory Committee

August 2022

Established the Sustainability Committee

The President and Representative Director presides over the Executive
Committee as a body to assist his decision-making in management. This
committee consists of directors who are not members of the Audit andSupervisory Committee and senior executives, including the executives of
SHO-BOND subsidiaries, nominated by the President. As a rule, thecommittee meets twice every month and meets at other times as neededin order to reach decisions quickly.
(Number of meetings in FY2022: 22 times)■ Audit and Supervisory Committee■ Internal Committees

SHO-BOND is a company with Audit and Supervisory Committee. The
Audit and Supervisory Committee has four members, of whom three are
Outside Directors. As a rule, the committee meets once every month andmeets at other times as needed. The Audit and Supervisory Committee, as
an independent body, audits and supervises the performance of directors
who are not members of the Audit and Supervisory Committee. The
committee also prepares audit reports and reaches decisions about
matters prescribed based on laws and regulations, the Articles ofIncorporation, and Audit and Supervisory Committee rules and audit
standards. The Audit and Supervisory Committee works with theaccounting auditor and the Audit Office to perform audits efficiently.
(Number of meetings in FY2022: 11 times)

Major committees related to business execution include the Risk
Management Committee, Sustainability Committee, Internal Control
Committee and the Asset Management Committee. Important management
issues are continuously discussed by theme at these committees, andsubmitted and reported to the Executive Committee as needed.

■ Overview of Corporate Governance System

General Meeting of Shareholders
Appointment / Dismissal

Appointment /Dismissal

Accounting
Auditor■ Nomination and Remuneration Advisory Committee
Accounting
audit

ReportCooperation
Cooperation

Respective departments /Group companies

SHO-BOND 2022 Integrated Report

Audit /
Supervision

Instruction

Internal audit

53

Audit and Supervisory
Committee

Cooperation

Audit OfficeAppointment / Dismissal

Instruction
ReportAudit

Board ofDirectors

Inquiry
Response
Nomination and Remuneration
Advisory Committee
Appointment / Dismissal / Supervision

President
Executive Committee
Submission / Report
Risk Management Committee
Sustainability Committee
Internal Control Committee
Asset Management Committee

The Group places importance on information disclosure and dialogue with shareholders, institutional investors, analysts, and other interested parties. For
institutional investors, we hold an information meeting about financial results twice a year as well as one-to-one meetings held every quarter. In addition to such
one-to-one meetings more than 100 times a year, we hold a small meeting attended by President after announcing the full-year financial results. For individual
shareholders, we hold information meetings in Tokyo and Osaka in March every year after transitioning to the holding company system in 2008. Dialogues are
consistent with the spirit of fair disclosure, and care is exercised to prevent the disclosure of insider information. The Executive Committee and the Board of
Directors regularly receive feedback periodically concerning the opinions and concerns of shareholders. This information helps management take actions aimed
at achieving sustained growth.
The basic policy for investor relations is to provide accurate, fair and timely information about our management strategies, business activities, financial
condition, and other items. The purpose is to build long-term relationships rooted in trust and receive a proper evaluation from all stakeholders. This policy isposted on our website.

Activity

Information meetings forindividual shareholders*Frequency (FY2022)
We refrained from holding
the meetings due tothe COVID-19 pandemic.

Information meeting for
institutional investors(attended by President
and Chief Financial Officer)

2 times

One-to-one meetings by
Chief Financial Officer

102 times

Company Information

The Nomination and Remuneration Advisory Committee has four members;
three Outside Directors and the President and Representative Director. This
committee is actively involved in formation and execution of the succession
plan for the President, has adequate discussions about matters on
directors’ nomination and remuneration and gives opinions and advice tothe Board of Directors.
(Number of meetings in FY2022: 3 times)

Dialogue with Shareholders and Investors

Corporate Governance■ Executive Committee

The Board of Directors has eight members including four directors who aremembers of the Audit and Supervisory Committee. The directors discussand reach decisions about important matters involving management asprescribed by laws and regulations and the rules for the Board of Directors.
As a rule, the board meets once every month and meets at other times asneeded in order to reach decisions quickly.
(Number of meetings in FY2022: 13 times)

Sustainability■ Board of Directors

The Company elects three Outside Directors who are Audit and Supervisory Committee members.
Mr. Satoru Miura has knowledge and experience as a certified public accountant as well as considerable experience as a corporate accounting advisor. Mr.
Akira Hongo has knowledge and experience as an attorney as well as considerable experience as a corporate consulting attorney. Ms. Reiko Kuwano has
considerable academic expertise and experience in the field of civil engineering as a professor at the University of Tokyo. These persons play a role in ensuring
the properness of the business execution of the Company by drawing on their respective knowledge and experience and providing oversight and advice froman independent standpoint as an Outside Director. None of the three Outside Directors have personal, capital or business relationships or any other special
interests with the Company. In addition, the standards for Independent Outside Directors in the Company’s Corporate Governance Guidelines comply with theindependence standards of financial instruments exchanges. We seek to provide the Outside Directors with information in an efficient and in-depth manner sothat they can fully understand the Group and exercise their abilities to the fullest in management. When the Outside Directors make inquiries, relevant executive
officers directly give explanations to them as necessary, promoting smooth communication with them.

Business Strategies■ Overview of Corporate Governance System

SHO-BOND’s Outside Directors

Management Strategies

We transitioned to the holding company system ahead of our industry
peers and later became a company with an Audit and Supervisory
Committee to strengthen corporate governance. We will continue
maintaining a proper governance system while keeping a close eye onsocial circumstances.

For the fiscal year ended June 2022, a third-party external adviser is used to conduct a survey of all directors, including members of the Audit and Supervisory
Committee. As a result, the evaluation based on the analysis of the responses confirmed the effectiveness of the Board of Directors.
One of the issues that needed to be addressed in FY2022 was offering better executive training. To address this issue, we held three directors’ study
sessions to improve their knowledge and abilities as directors. We will continue to improve the effectiveness of the Board of Directors by further deepening
discussions on sustainability management and continually enhancing executive training.

What is the SHO-BOND Group?

Basic Views*The meetings are held in Tokyo and Osaka in March every year.

SHO-BOND 2022 Integrated Report

54Corporate GovernanceDirectors

President andRepresentative Director

Director and General Manager
of Technology Promotion Department

Tatsuya Kishimoto

Koyo Takeo

April 2001
April 2011

Joined SHO-BOND CORPORATION
Director and Executive Officer, and General
Manager of Kinki Regional Office
July 2012
Senior Managing Director and General Manager of Kinki Regional Office
September 2012 Director of the Company
April 2013
Senior Managing Director and General Manager ofMarketing and Sales Division of SHO-BOND
CORPORATION
April 2015
Executive Vice President and Director
April 2017
President and Representative Director
Director and General Manager of Corporate
Planning Department of the Company
May 2017
President of General Incorporated Foundation
Ueda Memorial Foundation (current position)
September 2017 President and Representative Director of theCompany (current position)
July 2021
President and Representative Director, andGeneral Manager of Marketing and Sales Divisionof SHO-BOND CORPORATION (current position)

April 1979
Joined SHO-BOND CORPORATION
January 2010 Director and Executive Officer, and General
Manager of Kyushu Regional Office
April 2011
Director and Executive Officer, and General
Manager of Engineering Department at Head
Office, Marketing and Sales Division
July 2012
Director and Managing Executive Officer, andGeneral Manager of Engineering Division of
SHO-BOND CORPORATION
September 2013 Director and General Manager of Technology Promotion
Department of the Company (current position)
April 2014
Senior Managing Director and General Manager ofEngineering Division of SHO-BOND CORPORATION
April 2017
Senior Managing Director, General Manager ofEngineering Division, and Director of TechnicalResearch Institute
April 2019
Executive Vice President and Representative
Director, and General Manager of TechnicalResearch Institute (current position)

Director and General Manager
of Corporate Planning Department

Yasuhiro Sekiguchi
April 1989
Joined The Mitsubishi Bank, Ltd. (currently MUFG Bank, Ltd.)May 2014
General Manager of Strategic Investment Division
July 2017
Joined SHO-BOND CORPORATION
December 2017 Director, Deputy General Manager of Corporate
Administration Division and General Manager of Corporate
Planning Department of SHO-BOND CORPORATION
September 2018 Director and General Manager of Corporate
Planning Department (current position)
April 2020
Managing Director, Deputy General Manager ofCorporate Administration Division and General
Manager of Corporate Planning Department of
SHO-BOND CORPORATION
September 2022 Managing Director, General Manager of Corporate
Administration Division, General Manager ofCorporate Planning Department, and General
Manager of ESG Promotion Office, Corporate
Planning Department (current position)■ Total Amount of Compensation, etc. for the Fiscal Year Ended June 30, 2022 (Million Yen Unless Otherwise Stated)

Number of Directors (persons)AmountTotal amount of remuneration by type:
Basic remuneration

Directors (excluding Directors serving as Audit
and Supervisory Committee Members)[of which, Outside Directors]

5
[–]

83
[–]

83
[–]

Directors (Audit and Supervisory
Committee Members)[of which, Outside Directors]

4
[3]

24
[19]

24
[19]

Total

9
[3]

107
[19]

107
[19]

Director and General Manager
of Sales Management Department

Director and Full-time Audit andSupervisory Committee Member

Shunya Tojo

Shigeru Naraoka

November 1990 Joined SHO-BOND CORPORATION
July 2012
Director and General Manager of Administration and Human
Resources Department of SHO-BOND CORPORATION
April 2014
Managing Director, General Manager of Corporate
Planning Division, and General Manager of
Administration and Human Resources Department
September 2015 Director, General Manager of General Affairs Department,
and General Manager of Compliance Department
September 2017 Managing Director, General Manager of Corporate Administration
Division, and General Manager of Administration and Human
Resources Department of SHO-BOND CORPORATION
Director and General Manager of Public Relations Department of
the Company
April 2019
Senior Managing Director, General Manager of Corporate Administration
Division, and General Manager of Administration and Human Resources
Department of SHO-BOND CORPORATION
Director and General Manager of General Affairs Department of the Company
September 2022 Director (Full-time Audit and Supervisory Committee
Member) of the Company (current position)

May 1989
July 2012

Joined SHO-BOND CORPORATION
Director and Executive Officer, and General
Manager of Chubu Regional OfficeDirector and General Manager of SalesManagement Department of SHO-BOND
MATERIAL CO., LTD.
April 2017
Director and General Manager of Marketing andSales Department, Marketing and Sales Division of
SHO-BOND CORPORATION
April 2018
President and Representative Director of
SHO-BOND MATERIAL CO., LTD. (current position)
April 2019
Director and General Manager of SalesManagement Department, Marketing and Sales
Division of SHO-BOND CORPORATION
September 2019 Director and General Manager of Sales Management
Department of the Company (current position)
July 2016

Outside Director

Outside Director

Audit andSupervisory Committee Member

Audit andSupervisory Committee Member

Satoru Miura

Akira Hongo

April 1981
June 1990
February 2015

Registered as certified public accountant (to present)
Established Miura C.P.A. Office (to present)
Outside Corporate Auditor of NODACORPORATION (current position)
March 2015 Corporate Auditor of Toukei Computer Co., Ltd.
March 2017 Outside Director (Audit and Supervisory Committee
Member)
September 2017 Outside Director (Audit and Supervisory Committee
Member) of the Company (current position)
September 2021 Auditor of SHO-BOND CORPORATION

April 1988
Registered as attorney at law (to present)
April 1995
Established Hongo sogo Law Office (to present)
April 2010
Professor of Keio University Law School (current position)
September 2017 Outside Director (Audit and Supervisory Committee
Member) of the Company (current position)

Reiko Kuwano

April 1989
Joined TAISEI CORPORATIONMarch 1999 Research Associate of the University of Tokyo
October 2001 Senior Researcher of Public Works Research Institute
April 2006
Associate Professor, Institute of Industrial Scienceof the University of Tokyo
July 2013
Professor (current position)
September 2017 Outside Director (Audit and Supervisory Committee
Member) of the Company (current position)■ Knowledge, Experience, Skills, etc. of Each Director (Skill Matrix)

Internal Control

1
2
3
4
5
6
7
8

Name

InsideCorporate
Outside management

Tatsuya
Kishimoto Inside
Koyo
InsideTakeo
Yasuhiro Inside
Sekiguchi
Shigeru
Naraoka Inside
ShunyaInsideTojo
SatoruOutside
Miura
Akira
Outside
Hongo
Reiko
Kuwano Outside

Finance /Accounting

HR

Legal affairs /Compliance /Risk management

GlobalTechnology /R&D

Skill items

Details

Corporate
management

Contributes to management based on experience taking part incorporate management, making of significant corporate decisions, etc.

Finance /Accounting

Contributes to management based on experience and knowledge
related to finance and accountingHR

HR refers to Human Resources. Contributes to management based on knowledge
and experience related to the formulation of human resource strategies, humanresource development and training, diversity, working style reforms, etc.

Legal affairs /Contributes to management based on knowledge and experience
Compliance /Risk management related to legal affairs, compliance and risk management
GlobalContributes to management based on knowledge and experience
related to overseas business development, etc.

Technology /R&D

R&D refers to Research and Development
Contributes to management based on knowledge and experience
related to technology and R&D

Company Information

The SHO-BOND Group has a system of internal controls for ensuring that all business operations are conducted properly in accordance with the Companies
Act and Ordinance for Enforcement of the Companies Act. In addition, the Board of Directors has established The Basic Policy for Constructing an Internal
Control System that has the goals of efficient business activities, reliable reports, strict compliance with laws and regulations, and other items.
We are taking various measures, including the establishment of an Internal Control Committee and a department in charge of promoting internal control in
FY2019, in order to further strengthen internal control within the Group and permanently ensure a favorable control environment.

No.

Corporate Governance

As a rule, the Group does not purchase or hold the stock of suppliers and other business partners with the exception of cases where purchasing and holding
stock helps conduct business operations efficiently and maintain and strengthen business relationships, thereby contributing to the medium- to long-term
growth of its corporate value.
Holdings of the stock of other companies are examined individually by taking into consideration of qualitative and quantitative benefits and risk factors,
including holding purposes, the amount of transactions with these companies, their operating environment, results of operations and financial position, dividend
yields as a return of investments and stock price fluctuation risks. Holdings are reduced when there is little need to continue owning the stock in accordancewith the current Medium-term Business Plan.
Voting decisions concerning the stock of other companies are based on the goals of increasing shareholder value and contributing to the long-term growthof the corporate value of them.

Outside Director

Audit andSupervisory Committee Member

Sustainability

Note: The above number of directors includes one director serving as Audit and Supervisory Committee member who retired at the closing of the 14th Annual General Meeting of
Shareholders held on September 28, 2021.

Cross-shareholdings

Business Strategies

Category

Management Strategies

At Board of Directors meeting held on September 26, 2019, the SHO-BOND Group resolved the policy regarding decisions on the details of the compensation,etc. for each individual Director (excluding Directors serving as Audit and Supervisory Committee Members; hereinafter “Directors”), and the details of such are as
follows:
As the Company is a holding company that is in charge of supervising Group companies, the compensation for the Company’s Directors comprises basic
compensation only. Furthermore, the payment of basic compensation shall be monthly fixed compensation in cash.
All of the Company’s Directors, other than Outside Directors, concurrently serves as Director or Auditor of a subsidiary. Compensation is determined byproportionately taking into consideration the weight of the business of both the Company and subsidiaries, and multiplying it by the monthly compensation
amount of subsidiaries. Furthermore, bonuses, which are paid depending on financial results, are paid by the subsidiaries to which the Directors belong. In
determining compensation, etc., the President and Representative Director prepares a compensation proposal, including the portion to be paid by subsidiaries,that is determined at a Board of Directors meeting after consulting the Nomination and Remuneration Advisory Committee, which comprises the Company’s
Outside Directors and the President and Representative Director.
In determining the details of individual compensation, etc. for Directors pertaining to the fiscal year ended June 30, 2022, the Company judged that it is in linewith this policy as the Nomination and Remuneration Advisory Committee carried out a multifaceted investigation of the original proposal, and the Board of
Directors made the determination after taking into consideration the report from the Nomination and Remuneration Advisory Committee.
The upper limit on compensation to Directors is ¥350 million per year (not including employee salaries), and the upper limit on compensation to Directors
serving as Audit and Supervisory Committee Members is ¥50 million per year, both of which were resolved at the 8th Annual General Meeting of Shareholders
held on September 25, 2015.

What is the SHO-BOND Group?

Details of Compensation for Directors (and Other Officers)

Note: The table is not indicative of all the expertise and experience possessed by the Directors.

55

SHO-BOND 2022 Integrated Report

SHO-BOND 2022 Integrated Report56Compliance

Risk Management Framework

Basic Concept for Compliance

The Group has risk management rules and a Risk Management Committee to be prepared for events that can have a major impact on business activities andreduce exposure to these risk factors. Risk management also includes measures to minimize damage and losses if a crisis occurs and to prevent incidents fromhappening again.
The Risk Management Committee plays a central role in risk management at the Group. The Committee chaired by President and Representative Director
meets once a quarter as a general rule. The Committee puts together individual risks discussed in other internal committees to (1) identify risks and implement
preventive measures, (2) act as an emergency response headquarters when a crisis may occur, and (3) develop actions to prevent incidents from happening
again across the Group. The Committee periodically evaluates risk factors according to the established process, and constantly reexamines the risk
management process itself to reflect current changes in the social and business environment.

■ Risk Management Framework Chart■ Risk Management Process

Executive Committee

Business risk factors of the SHO-BOND Group are divided into Risk Categories andspecific potential problems are identified for each risk factor.
Magnitude of risk is defined as “the impact of an incident” multiplied by “theprobability of the incident happening.”

2

Studies to determine numerical and other indicators for individual risk factors and the methods formonitoring them.
Monitoring for changes in “the impact of an incident” and “the probability of the incident happening.”
Estimates of changes in risk exposure by using a qualitative analysis of changes in regulations, amendments
to laws, government financial policies and other items that are difficult to measure numerically.

Risk identification

Risk Management Committee
Risk analysis
and monitoring

Risk control

4

Risk evaluation

5

Responses
to incidents

Emergency response manuals to be prepared for incidents.
Perform studies concerning crisis management activities, such as direct responses toincidents, crisis management meetings, reports to government offices and agencies,
public announcements about emergencies, and other responses to incidents.

Business Continuity Plan
The Group has a business continuity plan (BCP) to address disaster risksuch as a great earthquake. We strive to improve our capability to continue
business operations based on the BCP on a regular basis to avoid thedisruption of key operations as much as possible in the event of a majordisaster and to return to normal operations early if disrupted.
We periodically conduct an evacuation drill and first aid training on theassumption that a great earthquake has occurred. We also conduct a drillof responding to a safety confirmation email and have each site regularly
check the items of an emergency kit. We will continue to upgrade the BCP
and expand the scope of areas covered by it to reduce disaster risk.

The Group implements a compliance program. The SHO-BOND Group
Code of Conduct clearly states the rules of behavior that its employees are
expected to follow. We also have a compliance manual to ensure that all
employees are aware of the importance of compliance.
In addition, we have close cooperation among Group companies by
establishing a Compliance Office responsible for compliance matters andassigning a compliance leader to each site.
Further, we provide education and training to all employees of theGroup to raise compliance awareness.

Compliance Training
The Group provides compliance education as part of training for new
employees and follow-up training* provided each year. In the training, we
give a general compliance lecture and urge employees to observe the
SHO-BOND Group Code of Conduct. We also ensure that employees areaware of the Construction Business Act that must be observed as aconstruction company.
We seek to create an employee-friendly work environment by
periodically having all employees do a self-check and providing them withe-learning to prevent all forms of harassment.

*Follow-up training is targeted at employees for their second year and those who havejust got promoted.

Whistleblowing Contact Points
The Group has internal and external contact points for whistleblowers toreport any kind of violation they detect, regardless of its agent (individual ororganization) and the type of regulations violated (applicable laws, the rulesof employment, the SHO-BOND Group Code of Conduct, etc.). The
purpose is to investigate and eradicate such violations as soon as we can.
We pay due care so that whistleblowers will remain anonymous as a
general rule and will not suffer any disadvantages.

Establishment of Anti-bribery Policy

Unify the workplace
8. Contribute to maintaining a pleasant and productive workplace environment
We will maintain healthy and safe workplace environments throughmeasures to improve employment terms and other working conditions.
9. Show respect for human rights
We will never allow discrimination or other improper treatment of ouremployees regarding employment and compensation based on theirnationality, gender, beliefs or other personal characteristics.
10. Play a role in placing the right people in the right jobs
We will perform fair and appropriate performance evaluations andprovide compensation and training with the goal of enabling our
employees to fully utilize their capabilities.
Contribute to society
11. Participate in community involvement
We will increase opportunities for communications with communities
in order to participate in many programs for contributing to society.
12. Be part of environmental conservation activities
We will reduce the environmental impact of our construction projects
through many activities in order to combat global warming, conserve
energy and protect the environment in other ways.

57

SHO-BOND 2022 Integrated ReportCompany Information

The Group has sought to maintain sound business practices. In August
2022, we established an Anti-bribery Policy to clarify our anti-corruption
philosophy from a sustainability perspective. Based on the SHO-BOND
Group Code of Conduct, we will continue to uphold high ethical standards
to prevent bribery, and continue to ensure fair and sound relationships withour customers and all other stakeholders.

Corporate GovernanceWith the acceleration of DX and changes in the usage environment of
information systems, information security risk has been increasing thesedays, such as the growing sophistication of external cyberattacks. In theconstruction industry in particular, ensuring information security is anurgent issue as construction site offices are exposed to major information
security risks. We therefore raise awareness of these risks among
employees by taking such measures as having all employees including theexecutive officers complete e-learning courses, conducting a phishing drill,and distributing awareness posters to our construction sites across Japan.
Going forward, we will prevent unauthorized access from outside theGroup and computer viruses by sequentially taking more defensive anddetective network security measures.

By using the reports from business units, the executive in charge of risk management assesses
the magnitude of every risk factor and submits a report to the Risk Management Committee.
The Risk Management Committee determines priorities concerning the magnitude andcategories of risk factors and discusses methods for the efficient management of risk.

Compliance Promotion Framework

3. Perform sales activities properly
We refuse to engage in collusion, bribes, dumping and other improper
activities for receiving orders and will never accept any invitation toparticipate in these types of activities. We will work closely withproject owners and prime contractors in order to receive orders in afair manner and to clearly define contract terms.
4. Remain focused on suitable construction operations and safety
At all projects, we will establish a framework for compliance with theConstruction Business Act and other construction laws andregulations, preventing accidents, and facilitating mutual
understanding and cooperation with partner companies and suppliers.
5. Ensure that accounting procedures and disclosure activities are proper
We will establish and adhere to fair and appropriate procedures foraccounting activities to ensure the reliability of financial reports anddisclose information required by our stakeholders.
6. Eliminate antisocial forces
We refuse to respond to improper requests from antisocial forces andwill never have any relationship with antisocial forces.
7. Maintain a sound crisis management framework
We have an organizational crisis management framework in order to
respond immediately to a natural disaster, cyberattack, terrorism orother crisis.

Sustainability

Information Security Measures

Prepare lists of business tasks that every business unit performs periodically in order
to measure and monitor risk factors. Next, check to confirm that risk factors arebeing controlled by these business tasks.

1. Earn customer satisfaction and trust
We will fulfill all of our contractual obligations with customers and,based on sound communications with customers, provide the best
possible construction services and products by making proper andtimely decisions.
2. Provide outstanding technologies and quality
We will constantly develop new technologies and aim for even higher
quality.

Business Strategies

Other Risks

Quality Management Committee

IT Promotion Committee

Asset Management CommitteeIntellectual Property Committee

Safety and Health Committee

Sustainability Committee

Group Companies

3

Social mission

Take responsibility for your actions

Explanation

1■ The SHO-BOND Group Code of Conduct

Management Strategies

Process

Board of Directors

The SHO-BOND Group believes that a sound compliance framework isvital to conducting business activities that meet high standards of social
responsibility and are capable of sustainable growth. The SHO-BOND
Group Code of Conduct enables all employees to do their jobs based on athorough understanding of socially acceptable behavior, laws andregulations, internal rules and other guidelines.
All employees at the group are dedicated to the achievement of theaction principles “Corporate Credo” and the Corporate Philosophy by using
a broad range of activities for earning the trust of society and all
stakeholders.

What is the SHO-BOND Group?

Risk Management

SHO-BOND 2022 Integrated Report58