Code of Conduct 2023

Message

We, Maruzen Pharmaceuticals Co., Ltd., based on compliance withlaws and regulations, have been striving to pursue safe andfunctional ingredients from the customer's viewpoint, to continue
our business that is kind to people and useful to the world, and topreserve the global environment.
As we celebrated our 70th anniversary in 2019, we believe that
corporate involvement in and resolution of environmental andsocial issues facing the world will become even more important, andwe have formulated a code of conduct and begun initiatives toensure that we conduct our daily business activities withresponsibility for everyone involved in our business and the futureof the global environment.
Maruzen Pharmaceutical’s most important asset is its employees.
We believe that respecting human rights, recognizing each other’s
individuality, and creating a safe and secure environment in which
President
employees can feel fulfilled in their work are the cornerstones of
Yasuhiro Higurashi
management. All of us at Maruzen Pharmaceuticals are committed
to the "power to care," "power to nurture," and "power to discuss
our dreams with each other. Maruzen's tagline, "Connecting theBlessings of Nature" refers to "nature's blessings" not only interms of plants used as raw materials, but also in terms of the various types of energy that are
indispensable to our business activities.
In procuring plants as raw materials, we take various measures, such as local cultivation guidance,
not only for business continuity but also for the preservation of species. We are striving to conduct
our business activities in a sustainable manner while giving due consideration to the global
environment in many ways.
In order to fulfill our responsibility to society by valuing the various "connections" with ourbusiness partners, employees, and the global environment, our code of conduct will continue toearnestly address these various dreams and issues. This will lead to our contribution to the healthand prosperity of people's lives through our business, leading to the 100th anniversary of our
founding.
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Our Mission

Maruzen Pharmaceuticals Co., Ltd., is located in Mukaihigashi, Onomichi City (one of the islands in
the Seto Inland Sea), in an area with its tranquil waters, picturesque mountains, and traditional
culture. Our relationship with such a local community has nurtured our corporate activities from allperspectives, including environmental and cultural aspects. From the time of our founding until
now, we have been committed to proposal-based sales. Our starting point was to thoroughly test
the application of licorice in every field with original ideas. Always keeping in mind our original
corporate philosophy, we have consistently focused on useful plants in the natural world and thefunctional components of the plants themselves. We believe that the results of our continuous
efforts in extraction technology are the result of today's corporate development themes and needs.
Since our establishment in 1938, we, Maruzen Pharmaceuticals, have consistently pursued highly
safe and functional ingredients from the customer's point of view, using extraction methods mainly
from useful plants in nature, and have been striving not only to provide safe materials but also tocontinue our business that is useful for a people-friendly world and to preserve the global
environment. We believe that continuously providing products and services demanded by society
in any era will lead to "customer satisfaction," which is the source of our company's existence.
Maruzen Pharmaceuticals has been developing its business and conducting its activities with aclear sense of purpose and philosophy of enjoying the joy that comes from the company's mission
statement, "to offer you the vitality of nature to enhance health, beauty, and humanity”. We willcontinue to work with functional ingredients as our keywords. In the fields of pharmaceuticals,
cosmetics, and food additives, we will continue to deliver the blessings of nature to the world in
harmony with the assets of "people, society, business and nature.

Connecting the Blessings of Nature
On the occasion of our 70th anniversary, we have taken a fresh look at our domain andrenewed our traditional tagline. It expresses our determination to contribute to thedevelopment of society by firmly linking the blessings of nature with our customers,society, and the future through a variety of means.
-2-Code of Conduct
Maruzen Pharmaceutical has established a “Code of Conduct” and contributes tothe development of society by firmly connecting the blessings of nature to ourcustomers, society, and the future through a variety of means.
Attitude toward Customers
Fair Business Practices

p4-5

Research & Development

p6-7

Product Quality & Safety Management

p8

Management & Protection of Information Assets

p9-10

Disclosure of Information

p11-12

Responsivity to Society

Reduction of Environmental Impact

p13-14

Sustainable Procurement

p15

Community Contribution Activities

p16

Developing a workplace that is easy to work in
Respect for Human Rights

p17

Human Resources Development & Labor Practices

p18

Ensure Employee Safety & Promote Healthp19-21-3-

Fair Business Practices
Maruzen Pharmaceuticals' officers and employees will work together to ensure that
all corporate activities are conducted in a fair and law-abiding manner.
■Ensure compliance with laws and regulations
Maruzen Pharmaceutical has upheld compliance with laws and regulations in its
internal rules and regulations and conducts its corporate activities in strict
compliance with laws and regulations. Whenever laws related to corporate
activities are enacted or revised, the General Affairs Department takes thelead in notifying the company and ensuring that all employees are fully aware of
the changes.
All officers and employees will be subject to disciplinary or other action in theunlikely event of inappropriate behavior.
Directors and employees may consult or report to the "Compliance and Harassment
Consultation and Reporting Desk" if they discover violations of laws, regulations,ethics, or other company rules, or if they are subjected to harassment of any kind.
The Consultation and Reporting Desk will examine the information received,
accurately grasp the facts, and take corrective measures as necessary.
Confidentiality of consultants and reporters is protected, and they will not betreated unfavorably because of their consultation or reporting.

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Fair Business Practices■Cutting off relations with antisocial forces
Maruzen Pharmaceuticals has declared that it will take a resolute stance against
antisocial forces and will sever all relations with them.
■Compliance with antitrust Laws
Maruzen Pharmaceutical shall comply with the Antimonopoly Law in all areas ofproduction, sales, purchasing, etc., and conduct business activities based on fairand free competition.
■Prohibition of conflicts of interest
Maruzen Pharmaceuticals does not engage in any acts that benefit individuals
based on their position in the company or information obtained in the course of
their duties, nor does it engage in any acts that benefit the company or its
employees.
The company will not engage in any conduct that conflicts with the interests of thecompany or the company's employees.
■Bribery and the giving and receiving of gifts
Maruzen Pharmaceuticals prohibits employees from accepting or offering bribesand does not permit unfair dealings in accordance with internal rules. Official gifts
to external parties are also permitted only with the prescribed approval.

-5-Research & Development
From material exploration to product development, Maruzen Pharmaceuticals iscommitted to responding to customer feedback with analytical technologies andcutting-edge evaluation technologies, and to developing products with an eye
toward solving social issues.
■Natural material search
The search for natural materials is the first step in our research. We pursue natural
materials that can meet the needs of our customers and strive to search for usefulmaterials from all over the world, both domestically and internationally. We conduct
research on materials we obtain by confirming their scientific names, checking forlegal restrictions, and investigating their resources. When acquiring materials, wetake into consideration their impact on biodiversity and strive to conserve thenatural environment and use them in a sustainable manner.
■Active ingredient analysis
Active ingredient analysis is performed through separation and purification,
structural confirmation, and content analysis of various components contained innatural materials using instruments such as NMR, LC-MS, and SFC to analyze active
ingredients and explore the superior functions of natural materials.
■Bioresearch
In biotechnology research, in order to obtain useful natural materials of stable
quality, we conduct research on seedling production using plant culture technology
and the use of microorganisms and enzymes to impart new functionality to natural
materials.
■Activity evaluation
Our activity evaluation aims to ensure that our customers can use our products withconfidence by evaluating their efficacy utilizing more than 100 different activity
evaluation systems to find the bioactivity of natural materials.
■Extraction and purification technology
Extraction and purification technologies are being studied with the aim of acquiringand installing the latest manufacturing equipment technology in order to utilize new
extraction and purification technologies in our own production.
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Research & Development■Product development
In product development, we aim to propose new products that our customers will
be happy to use and that we will create together with them by obtaining natural
materials and adding technical development to basic research for use in actual
pharmaceuticals, cosmetics, quasi-drugs, and food products.
■Regulatory compliance
For regulatory compliance, we provide the tools necessary to handle various
procedures, including applications for approval of quasi-drugs, as well as our own
research on regulatory-related information in Japan and overseas.
■Patent support and literature search
We view patent correspondence and literature searches as essential rights andinformation management for our customers to use our products with confidence.
We strive to collect and utilize the latest information through literature searches,
patent searches, and legal information searches.
■Intellectual property management
Based on our corporate philosophy of continuing to provide the world with theblessings of nature while coexisting with the assets of "people, society, business,
and nature," Maruzen Pharmaceutical is working to protect our products byapplying for, obtaining, and maintaining intellectual property rights, including
patents and trademarks. We also respect the intellectual property rightsof third parties by managing intellectual property risks through research of thirdparty rights.

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Product Quality & Safety Management
Maruzen Pharmaceuticals stably supplies reliable products that customers canuse with confidence based on our "Quality Policy".
■Quality assurance
At Maruzen Pharmaceutical, we focus on providing a stable supply of the highquality products demanded by our customers.
We have established a department that assures and oversees overall quality inorder to improve customer satisfaction, and we are continuously working to ensure
and improve quality.
Maruzen Pharmaceutical's Quality Assurance & Quality Control Division has adedicated quality control department at each factory that inspects each product toensure that it meets the company's own standards in accordance with various laws.
Our mainstay pharmaceutical licorice-based products are manufactured in a factorythat complies with GMP (*). The Miyoshi Factory and related divisions have also
obtained ISO 9001:2015 certification (international standard for quality
management systems by the International Organization for Standardization (ISO)).
*GMP stands for “Good Manufacturing Practice" and refers to the standards for
manufacturing and quality control at a manufacturing facility.
■Quality analysis
Quality inspections by educated and trained inspectors to ensure product quality
and improve customer service.
（We aim to achieve zero quality problems by properly implementing the following
quality control measures (raw material inspections, in-process product inspections,product inspections, etc.).
We strive for early detection and improvement of problems.
■Product safety management
Product safety is managed from product development to shipment in accordancewith internal regulations. For safety, we assess risks to the environment and healthfrom the design stage. In addition, we ensure that documentation and reporting
required in accordance with internal regulations are carried out.
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Management & Protection ofInformation Assets
Maruzen Pharmaceuticals takes optimal management and protection measures toadequately safeguard information assets against threats to their confidentiality,
integrity, and availability.
■Information asset management
As a measure for business continuity planning (BCP) and the preservation ofconfidential information, we have relocated our server equipment to a high-security
external data center to manage our information assets in an optimal environment.
Asset information* on IT equipment connected to the network is automaticallycollected every 24 hours for asset management.
*Model, application, license, user, purchase information, etc.
Internal rules prohibit the leakage of confidential information of business
importance to outside parties, causing damage to the company or interfering with
the normal operation of business.

■Cyber security
In preparation for cyber attacks, we continue to implement cutting-edge security
measures, such as enhanced monitoring through our 24/7 intrusion detection
service and measures to prevent secondary infection using infection spreaddetection technology.
Targeted e-mail attack countermeasure systems have been introduced, not only toprevent intrusion but also to detect and we are also strengthening our measuresagainst analysis.
We conduct annual training against targeted e-mail attacks to raise employee
security awareness, and at the same time, we are building a system that can
respond quickly in the event of an incident.

-9-Management & Protection ofInformation Assets■Privacy
Maruzen Pharmaceuticals fully recognizes the importance of protecting personal
information and respects the Personal Information Protection Law, various
regulations and guidelines. In addition, employees who manage personal
information are audited on a regular basis.
In accordance with the "Act on the Protection of Personal Information," Maruzen
Pharmaceutical has established a "Personal Information Protection Policy" toappropriately protect personal information, which is available on our website.

To ensure the proper handling and protection of personal information, education onlaws and regulations is provided and monitoring systems are in place.
The protection is provided to prevent information leakage due to theft or loss of PCs,
we have implemented measures such as encryption of hard disks and stored data,and cloud-based e-mail management.
In order to encourage appropriate measures for personal information, we haveestablished a "Contact for Questions, Complaints, etc.".

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Disclosure of Information

Maruzen Pharmaceutical will continuously disclose accurate and appropriate
corporate and product information through its website, newspapers, andinformation magazines.
Below is a list of major certifications and awards received by March 2022.
Year

Certifications and Awards

2001

Obtained ISO9002:1994 certification (Miyoshi factory and related departments)
Perry Johnson Registrar

2003

Obtained ISO9001:2000 certification (Miyoshi factory and related departments)
Perry Johnson Registrar

2005

Certified as a comfortable work environment that should be taken by business
operators (Shin-Onomichi Factory)
Hiroshima Prefectural Labor Bureau

2009

Obtained ISO9001:2008 certification (Miyoshi factory and related departments)
SGS Japan

2014

Received the Hiroshima Prefecture Labor Bureau Director’sAward for Excellence in Safety and Health (Headquarters Factory).
Hiroshima Prefectural Labor Bureau

2016

・Participation in SEDEX・Participation in CDP (Climate Change)
・Certified as a Hiroshima Prefecture Company Practicing
Workplace Reform
Hiroshima Federation of Chambers of Commerce and Industry

2017

・Obtained ISO9001:2015 certification (Miyoshi factory and related departments)
Perry Johnson Registrar

・Recognized as a regional future driving company
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Disclosure of Information

Maruzen Pharmaceutical will continuously disclose accurate and appropriate
corporate and product information through its website, newspapers, andinformation magazines.
Below is a list of major certifications and awards received by March 2022.
Year

Certifications and Awards

2018

Participation in CDP (Water Security)

2019～

・Participation in Ecovadis (Silver Medal 2019-2022)
・In the "Business Classification Evaluation System"
based on the Energy Conservation Law, achieved
an S Class (Excellent Energy Saving Business) rating(2019-2022)

2021

・Publication of SDG Declaration
・Hiroshima Corporate Health Declaration Certification as an
Excellent Health Promotion Office (5-star)2022

・Publicly disclosed "Sustainable Procurement Policy" and"Supplier Code of Conduct".
・Endorsement of "Onomichi COOL CHOICE- 12 -

Reduction of Environmental Impact
Maruzen Pharmaceuticals promotes initiatives that take into consideration theenvironmental impact of our business activities in accordance with our"Environmental Policy".
■Factory initiatives
Maruzen Pharmaceutical established the Energy Management Committee in 2010
to reduce environmental impact.
Annual environmental reports are prepared at all factories. Although the amount ofactivity at each factory has increased over the years, energy consumption per unit ofactivity has decreased over the years due tothe installation of new equipment such as
high-efficiency boilers and LED lights.
Solar panels have been installed on the
Welfare building and the temperature-controlled
warehouse at the Shin-Onomichi Factory to provide
electricity used at the factory. In addition,
the Miyoshi Factory has switched its fuel fromheavy oil to LNG (liquefied natural gas) to reduce CO₂.
Simplified product packaging has been introduced to reduce waste.
Wastewater treatment facilities are fully equipped for discharge into the sea andrivers. When wastewater is discharged into the sea or rivers, it is purified by
microorganisms. We also manage water quality thoroughly in consideration of
biodiversity.
■Office initiatives
In our offices, we not only use LED lights but also turn off lights in unused areas toreduce electricity consumption. We also promote "Cool Biz" and "Warm Biz" andset appropriate air conditioning temperatures.
To reduce paper waste, internal communications are conducted electronicallywhenever possible, and when printouts are made, recycled paper is used anddouble-sided printing is implemented as needed.
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Reduction of Environmental Impact■Environmentally friendly Kui Farm
In 2007, Maruzen Pharmaceutical established Kui Farm in Mihara City, Hiroshima
Prefecture, with approximately 75,000 m2 of farmland, in order to reduce its
environmental impact and to test cultivate useful plant materials on its own. At
Kui Farm, a recycling cycle has been established by composting extraction
residues and cultivating useful plant materials.
Growing Raw
Materials

Sustainable Lifecycle
Composting
Residues

Manufacturing
Products- 14 -

Sustainable Procurement
With the support and cooperation of all suppliers, Maruzen Pharmaceutical aims tocontribute to the realization of a sustainable society and conducts the procurement
activities that take social and environmental aspects into consideration.
■Quality-oriented
We will comply with our company's quality policy and procure raw materials thatprioritize quality, safety, and security.
■Fairness and Impartiality
In the selection of suppliers, we conduct a comprehensive evaluation from theperspectives of quality, price, delivery date, transaction conditions, technology
reserved, service capability, degree of cooperation, secure procurement, CSR
initiatives, etc. In addition, competitive quotations from two or more suppliers areused in principle, and we will provide fair entry opportunities.

■Legal Compliance and Ethics
We will comply with the common sense of society, related laws and regulations,and various company regulations including ethics, and conduct fair and sensible
procurement activities. We also have no personal interest in any supplier.
■Collaboration
Based on good communication with suppliers, we aim for the sound developmentof society by building mutual understanding and trusting relationships.
■Human rights
We never support forced labor, child labor, discrimination or inhumane treatment.
We will respect basic human rights and promote procurement activities that
respect labor conditions, health and safety.
■Environment
In order to maintain business that is useful for a human-friendly world and topreserve the global environment, we will comply with relevant laws and regulations
and practice procurement activities that coexist with the assets of “people, society,business and nature”.
■Maintenance of information security
We will strictly manage confidential information and personal information related
to procurement activities in compliance with relevant laws and regulations.
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Community Contribution Activities

Maruzen Pharmaceuticals promotes communication activities with local
communities in order to build a relationship of trust with various people in society.
■Community contribution activities
Maruzen Pharmaceutical participates in local festivals and events to carry on local
cultural traditions and contribute to the revitalization of local communities. In
addition, we regularly participates in cleanup activities to improve the local
environment.

Maruzen Pharmaceuticals will continue to provide the blessings of nature while
enhancing the value of our existence in harmony with "people, society, businessand nature". To share this idea, we continuously contribute to community activities
and spread our message to society.

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Respect for Human Rights

Based on our Human Rights Policy, Maruzen Pharmaceutical is committed to
conducting business with the most important issue of "contributing to society
through the happiness of our employees". The cornerstone of this policy isrespect for human rights. Maruzen Pharmaceutical respects the human rights ofall employees and will promote activities to realize them permanently.
■Activities to respect human rights(1) Human rights awarenessMaruzen Pharmaceuticals’ Administration Division will take the lead in promoting
correct understanding and respect for human rights through activities such as
raising awareness of human rights among employees.
(2) Human resource development
Maruzen Pharmaceuticals will create an environment in which a diverse range of
employees can fully demonstrate their abilities and will provide all employees withfair opportunities to develop and utilize their abilities according to their aptitudes.
(3) Work environment
Maruzen Pharmaceutical is committed to creating a healthy and comfortableworkplace and ensuring safety.
(4) Response to problems when they occur
Maruzen Pharmaceuticals will promptly take appropriate measures when concerns
about human rights violations arise in the course of its business activities.
The project will be implemented and resolved in a proper manner.
■Respect for Human Rights
Maruzen Pharmaceuticals supports the Universal Declaration of Human Rights andrespects fundamental human rights in accordance with the Labor Standards Law.
We do not discriminate on the basis of race, age, gender, sexual orientation, ethnicor national origin, disability, or religion. We also respect freedom of association andthe right to collective bargaining.
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Human Resource Development &Labor Practices■Education, training and self-development
Maruzen Pharmaceutical supports the skill development of its employees throughoverseas study programs, acquisition of qualifications, and participation in internaland external seminars.
■Personnel systems and equal opportunity
Maruzen Pharmaceutical supports skill development and self-realization that takes
into consideration each employee's aptitude and sense of values. We haveintroduced a personnel system that is fair, just, transparent, and motivating basedon results and abilities.

■Utilization of diverse human resources
Maruzen Pharmaceutical is striving to utilize diverse human resources not only byrecruiting new graduates, but also by utilizing mid career recruitment and recruiting
international students.
■Systems for work-life balance
Following initiatives are in place.
・Half-day paid vacation
・Paid leave based on hours
・Maternity leave before and after childbirth・Leave for congratulation or condolence
・Childcare and nursing care leave
・Child nursing care leave・Nursing care leave
・Exemption from overtime work for childcare/nursing care
・Limitations on overtime and late-night overtime for childcare and family care・Shortened working hours for childcare and nursing care・Menstrual leave, etc.
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Ensure Employee Safety &Promote Health
Maruzen Pharmaceuticals believes that a better working environment will bring a
sense of security and comfort to our employees. We believe that by doing so,
employees will be able to reach their full potential.
■Working conditions
Maruzen Pharmaceuticals ensures that all employees work under safe andcomfortable conditions.
We strive to maintain the most ideal work environment for our employees incompliance with the Labor Standards Law and other applicable laws and regulations.
■Working environment
At Maruzen Pharmaceuticals, the health and safety of our employees is our top
priority. We strive to create the safest possible work environment so that ouremployees are not exposed to hazards and feel safe.
At all of our sites, we have established health and safety committees and othercommittees that conduct monthly workplace patrols to conduct risk assessment
activities. It is to ensure that we continue to maintain a high level of health andsafety at our sites. We also provide all employees with the opportunity to undergo
periodic health checkups at company expense.

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Ensure Employee Safety &Promote Health■Employee training
Maruzen Pharmaceuticals provides training for employees to acquire knowledge andskills related to health and safety when they are hired, when there is a change inwork content, and when they are engaged in hazardous or harmful work, in
accordance with laws, regulations, and company rules. In addition, the company isalso focusing on passing on the operational techniques of its facilities and is
striving to foster a culture that emphasizes safety by creating a workplace thatadheres to work procedures and regulations.
■Business continuity plan (BCP)
Maruzen Pharmaceuticals is a leading manufacturer of botanical extracts forpharmaceuticals, quasi-drugs, cosmetics. Our main business is also the
manufacturing and sale of botanical extracts for food additives, foods, and or healthfoods. Therefore, we declare that we will formulate a Business Continuity Plan (BCP)
based on this policy as a response to various threats that could disrupt our business,and that we will make continuous improvements in response to changes in ourinternal and external environments.

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Ensure Employee Safety &Promote Health■Forced labor and child labor
Maruzen Pharmaceuticals imports products and raw materials from many
countries around the world. However, we do not support forced labor or childlabor. In addition, Maruzen Pharmaceuticals complies with labor laws, which
stipulate that no one under the age of 18 may engage in overtime work or work on
holidays or late at night (10:00 p.m. to 5:00 a.m.).

■Harassment and abuse
Maruzen Pharmaceuticals treats all employees with respect and dignity andprohibits harassment of any kind in the workplace, in the conduct of business, andon other related occasions. Maruzen Pharmaceuticals does not engage in, and will
not tolerate, any other form of abusive behavior of any kind.
■Fulfillment of leisure time
We support club activities to promote interaction beyond the workplace and toenhance leisure time.

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To offer you the vitality of nature to enhance health, beauty, and humanity