Corporate Ethics and Compliance
Basic StanceIn addition to complying with laws and regulations and respecting human rights, it is imperative that we engage in actions thatare honest and based on a high level of ethics, as doing so also helps us increase shareholder value. To maintain and enhanceeach employee’s awareness of compliance, we are fostering and preserving a vibrant, sound corporate culture through suchmeans as communicating compliance-related information and implementing training on a global basis as well as operating acounseling and reporting system (hotline).

Major Initiatives
In 2018, we established a new Code of Conduct. This was donein order to clarify the Teijin Group’s response to the United
Nations Sustainable Development Goals (SDGs), the Global
Compact, and other initiatives in accordance with changes inthe social environment, as well as to share values among Groupemployees to bring about a transformation in awareness andconduct. In fiscal 2019, we created the Teijin Group Corporate
Ethics Handbook, which summarizes the key points for putting
the Code of Conduct into practice from the perspective ofsharing with all our employees around the world. In addition,
we have been carrying out the Employee Awareness Survey togauge employee understanding and behavioral awareness ofour philosophy, including the Code of Conduct.
Furthermore, in the case that a legal or ethical problem
occurs within the Group, we operate an internal and externalcounseling and reporting system with the aim of facilitating a
resolution on our own within the organization. Among the con­sultations and reports received, the Chief Social Responsibility
Officer (CSRO) determines the ones that could possibly
become major risk issues and reports them to the Total Risk
Management (TRM) Committee. They are then handled by ourtop management. In fiscal 2019, we formulated the new Rules

for the Teijin Group’s Whistle-Blowing, which determines
responsibility, authority, and specific measures for consultations/reports. We also introduced the Internal Leniency System,
which lessens the punishment for employees who make reports
regarding their own wrongdoings. In addition, we put in placea system where information on inappropriate conduct by members of our top management can be reported to the full-timestatutory auditors. In fiscal 2019, there were a total of 116­consultations/reports from within the Group.
Moreover, as a measure aimed at the prevention of bribery,in fiscal 2018 we established the Rules on Anti-bribery of Public
Officials, etc., based on the understanding that hospitality
toward public servants presents the highest risk of bribery. Infiscal 2019, we carried out an assessment of bribery and otherrisks of corruption in the sales divisions of all Group businesses.
Through such efforts, we are working to prevent our employees
from participating in bribery. In fiscal 2019, there were no significant cases pertaining to the violation of laws and regulations,
including bribery, nor were there any significant accidents orother incidents.

TOPIC
Efforts toward Respecting Human Rights
In its corporate philosophy, the Teijin Group pledges to“enhance the quality of life through a deep insight into humannature and needs, together with the application of our creativeabilities.” In order to achieve this, it is essential to respect therights and dignity of all human beings. To that end, theCompany’s Board of Directors passed a resolution to establish
the Teijin Group Human Rights Policy in March 2019.
To address human rights issues, we are taking initiatives inaccordance with the United Nations Guiding Principles on
Business and Human Rights and with the general principles
established by the International Labour Organization. In termsof our human rights due diligence activities, we have been
establishing a framework for such activities since fiscal 2018. We
have evaluated human rights violation risks by business and byregion and are conducting monitoring activities to prevent
human rights violations as a means to survey the actual situations at Group companies and major suppliers. In fiscal 2019,
we carried out a human rights due diligence risk assessment incollaboration with the external organization Caux Round Table

Corporate Ethics and Compliancehttps://www.teijin.com/csr/social/compliance/

Japan, in order to ensure objectivity.
In regard to the human rights issues identified through thisrisk assessment, we held a dialogue with external experts on
the global front lines of human rights issues, where we received
objective evaluations and advice on how to improve theseissues. Going forward, we will strive to improve the issues
pointed out to us by these experts within this dialogue.
P. 61 Supply Chain Sustainability (CSR Procurement)

Dialogue on human rights
held with external experts(October 11, 2019)(From the left)
Pauliina Murphy, Engagement Director, World Benchmarking AlliancePuvan J Selvanathan, CEO, Bluenumber Foundation
Camille Le Pors, CHRB and Senior Researcher, World Benchmarking Alliance
Rishi Sher Singh, Specialist, Global Supply Chain (India)

Initiatives on Respect for Human Rights
https://www.teijin.com/csr/social/human_rights.html

TEIJIN LIMITEDINTEGRATED REPORT 202055