（Ｃｏｄｅ Ｏｆ Ｃｏｎｄｕｃｔ）

Guideline

SANYO SHOKAI LTD.
First :April 2019
Revision-1: Mar 2022

Basic Requirements
A-1： Legal Compliance
Company shall comply with all laws and regulations in wage, working hours, employment, working
condition, workplace safety & health and environment in the country of location.

A-2： Official Permits
Company shall be correctly registered, certified and have operational permit from municipal officeof Company location.

A-3： Customer Requirements
Company shall comply the requirement with SANYO SHOKAI LTD and other company’s CoC as well.

(B) Social Responsibility
B-1： Employment AgreementCompany shall have employment agreement with each employee and specify working condition
which is duly explained to each employee.

B-2： Minimum Employment Age (Child Labor/Young Labor)
Company shall comply with a law for minimum employment age in the country of Companylocation. If no law is available, Company shall comply with ILO Convention No.138 which specify 15years old (14 years old for developing countries specified in article 2.4). The minimum employment
age shall not be less than graduation age of compulsory education. Company is obliged to prove ageof employee.
Company shall comply with laws and regulations for young employee whose age is more thatminimum employment age to less than 18 years old with working hours, night shift, wage, social
insurance, working conditions, training period, or so.

B-3： Forced Labor
Company shall not force employee work involuntarily. Free service and bonded labor are prohibited.

B-4： Working Hours and Overtime Working
Company shall guarantee all employees that working hours (regular hours + overtime hours) will not
exceed limit of law of the country or 60 hours. It is applied when business is usual. When it isunusual, it is exceptional. All employees shall have right to take at least one holiday at for 7 days.
When employee serves overtime working, Company shall pay fee based on low of the country.

B-5： Remuneration / Wages
Company shall pay more amount than legal or industry’s minimum wage, whichever higher, andlegal duty benefits to all employees.
When employee serves overtime work, Company shall remunerate employee based on law ofcountry, and provide accurate pay slip for each payment period.

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B-6： Discrimination and Discipline
Company shall not discriminate employee with its sex, age, nationality, region, race, color, politicalprinciple, pregnant woman, sexual preference, religion and social background.
Company shall not conduct any form of disciplinal action physically or mentally like abuse orharassment.
Employee shall not be exploited. And its dignity of human shall not be affronted.

B-7 Freedom of Assembly / Rights to Collective Bargaining
Company shall have latest laws and regulations for freedom of assembly / rights to collectivebargaining, transfer it to all employees and conform it.
Employee shall be a member of labor union or industry’s organization and have right to joincollective bargaining. Any employee shall not have harassment, threat and retaliation for movementof freedom of assembly / rights to collective bargaining.

B-8 Complaint Management
Company shall have a system which collects complaints from employees quickly and cope withproblems. (Suggestion box, Open door policy, Information exchange in committee, other)B-9 Subcontractors
Subcontractors are companies who take part of production chain of company and manufacture
products upon agreement. Subcontractors recommended to have audit of social responsibility,
occupational health & safety and environment. Company shall not outsource part of production tocompanies who do not comply with social responsibility, occupational health & safety andenvironment.

B-10: Anticorruption
Anticorruption is to prevent personal favor into Company business in order to keep fair trade withvendors or suppliers.
For this purpose, Company staff shall not give or receive any bribe. Expensive gift is considered abribe.
When conflict of interest between company staff and Company is expected, Company staff shallreport to company executive and ask solution.

B-11: Eliminating of Antisocial Forces
Company shall eliminate antisocial forces from their business. Before entering agreement withsupplier or vendor.
Company shall check the supplier or vendor if they have connection with antisocial forces.
Company shall always monitor their business if there is connection to antisocial forces, andeliminate money flow into antisocial forces.

(C) Occupational Health and Safety
C-1： Basics
Company shall comply with all laws and regulations for occupational health and safety in country.

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C-2：

Working Environment

Company shall provide clean, safe and healthy working environment for employee.
Company shall comply with law regulation of country for occupational safety and health.

C-3：Management of Chemical Substances

Chemical substances shall be stored in isolated place, clearly labeled, with safety sign posted,
properly ventilated, with manuals for handling & disposal, with personal protective equipment for
employee provided and emergency leak protection & cleaning tools provided.

C-4： Wet Process (Dyeing, Finishing and Washing)Some chemical substances used in wet process is prohibited or controlled to use. Factories with wet
process shall fully understand laws and regulations, provide evidence of no use and manage
handling of such substances due to restrictions by law.
Registration, Evaluation, Authorization and Restriction of Chemicals (REACH) is a European Union
regulation, regulation 2006/1907 of 18 December 2006. REACH covers the production and use ofchemical substances. Since it came into effective in June 2007, REACH requires all chemicals of one
ton or more in volume that are manufactured in or imported into the European Union each year tobe tested for health and safety and registered with a new central European authority – theEuropean Chemical Agency.

C-5： Fire and Emergency Evacuation
Company shall post evacuation route at prominent place in Company floor which updated timely.
Evacuation route and direction shall be written in local language with present position pointer.
Escape route shall be marked on Company floor.
Emergency exit shall have swing door with side hinge which shall open toward evacuation flow.
(Exception in heavy snowing area, need to check direction to open)
Emergency route shall be marked with sign which visible from 100 feet (30meters) distance andeven in dark place.
Company shall install fire and emergency alarm system and conduct fire and evacuation drill.
Fire extinguisher shall be checked every month and pressure tested for legal request. Inspection
date shall be recorded on hang tag.
Fire-fighting training be conducted at least once a year.

C-6： Maintenance on Machinery
Moving part of machinery shall be covered for safe.
Company shall periodically check and maintain machinery.
Parameter of machinery shall be kept securely for accurate operation.

C-7： Facility safe
Facility equipment (elevators/Lift, boilers, forklifts, compressors, power switch boards, etc.) Shallcomply with applicable laws and regulations and provide a work environment that considers healthand safety.
Accidents and disasters shall be prevented and effective measures shall be taken in the event of anemergency.
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C-8： Drinking water
Company shall provide employee drinking water.
Drinking water shall be free of charge.
Sharing drinking cup is prohibited.

C-9： Sanitary Facility
Toilet shall be clean, available and functioning all the time.
Toilet shall be illuminated enough and ventilated properly.
Toilet shall protect privacy.

C-10： Medical Equipment
Company shall have one filled first aid kit for employee installed at accessible place in each floor.
Company shall post emergency contact address in Company premises.
Company shall have trained employees for first aid treatment.

C-11： Industrial Accident
Company shall take measure for accident prevention and health care, provide well organizedindustrial safety management.
Company shall have internal rule and keep record of industrial accident.

C-12： Dormitory / Accommodation
If Company has dormitory, dormitory shall comply with laws and regulations for scale or size,ventilation, cooking facility, water supply and sanitary facility.
Same level of health and safety measure as work place shall be applied to dormitory either.
Company shall assign a manager in charge of accommodation for employee. The manager shall haveinternal rule which include requirements of laws and regulations for accommodation and have
responsibility to comply.

(D) Environment
D-1： Environment
Company shall comply with laws and regulations for environmental protection and not have any
pollution nor distraction of environment.
Company shall have internal rule which reflect laws and regulations for environmental protection
and assign a manager in charge of environment.
Company shall collect least necessary information from laws and regulations in country and conduct
audit.
Company shall periodically inform employee environmental problem.
Company shall work together to reduce greenhouse gas (GHG) emissions.

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