Lion Group Supplier CSR Guideline

1

Forced and Child Labor Avoidance

We prohibit forced labor and child labor, which is theemployment of individuals under the legal minimum working age.

2Non-Discrimination

We prohibit discrimination and the harsh or inhuman treatment
of individuals, to respect human rights.

3

Fair Wages, Benefits and Working
hours

4

Freedom of Negotiation for Employees unions or rights to negotiation

5

We provide fair wages and benefits and we do not allow working
hours to exceed the limits set by law.
We guarantee our employees the freedom of organizing labor

Human Rights,Labor Practices

67

Working Environment Health andSafety
Occupational Injury and Illness

We are aware and monitor occupational injuries and illness andtake preventive measures.

Sanitation, Food, and Housing

We provide facilities (canteen, dorms, bathrooms, etc.) for ouremployees.

Health and Safety for Employees

8Environmental Management System

9121314

We have employed and we properly operate an Environmental
Management System (EMS).

Minimizing Environmental Impacts

Environmental Permits and Reporting

We have obtained all legally required environmental permits,approvals, and registrations, and we report when necessary.

Prohibition of Corruption and Bribery

We maintain an ethical relationship with politicians and public
officials and do not engage in bribery, or make illegal
contributions.

No Improper Advantage

We maintain good relationships with business partners withoutabusing an advantageous position.

No Inappropriate Benefits

We prohibit the acceptance and the provision of benefits withbusiness partners beyond what is socially acceptable.

Fair Competition

We prohibit the hindrance of free competition, and we
conduct business fairly and transparently.

Intellectual Property

We prohibit the infringement of intellectual property rights ofothers.

Quality Management System

We have employed and appropriately operate a quality
management system.

Data Security

We properly manage and protect confidential and personal
information with information security systems.

Compliance

We are in compliance with all matters required by laws andregulations.

Supply chain Activities

We also demand our business partners to be sociallyresponsible as according to the categories listed above.

Environment
11

We properly manage the health of our employees.

We properly manage chemical substances involved in products
and manufacturing processes in compliance with laws andregulations.
We strive to minimize the environmental impacts of ourbusiness.

Chemical Substances

10

We ensure occupational safety and health, such as byemploying machine safeguarding.

Fair Operating
15

Practices

16

17

18

ConsumerIssues

1920

Overall21

Supplier CSR Guideline Glossary#Terms1

Forced labor

1Child labor

DefinitionLabor that is conducted unwillingly, including bonded labor such as for the repayment of debts, slavelabor performed as a result of human trafficking and inhumane prison labor, etc., including theimposition of restrictions on residence or movement (such as taking away identity documents) against
the will of the individual.
Labor that prevents access to education for persons younger than the recognized age limit on
compulsory education rights (under 15, or 14 in developing countries), labor that prevents healthy
development, labor that is dangerous and harmful to those under 18, and labor that exploits children.
The provision of less favorable treatment or opportunities (such as for recruitment, promotion, andcompensation) for unreasonable reasons and/or inhumane treatment. Unreasonable reasons include
race, skin color, gender, religion, political opinion, and social origin. Inhumane treatment includes
abuse, corporal punishment, sexual harassment, and power harassment (intimidation or verbalabuse).

2Discrimination

3Wages andbenefits / Working
hours

Working hours are managed and wages are paid adequately in accordance with law.

Freedom oforganizing labor
unions or rights tonegotiation

To ensure freedom of association or to join a labor union in accordance with laws and regulations
without reprisal, intimidation, or harassment. Even if the labor union does not exist, ensure there isan opportunity for labor-management discussion on labor conditions, etc.

4

5

Safety standards
Periodic inspections and maintenance, and the adoption of safety measures such as the installationfor equipment and of barriers and fail-safe interlocks.
machinery6

Occupational injury Accidents and /or health hazards in the workplace which may occur due to problems associated withand illness
fires, transportation, and electricity.

7

Facilities

Installations provided to employees outside of the workplace such as canteens, dormitories, drinking
fountains, and locker rooms.

8Healthmanagement

Medical examinations conducted as required by laws and regulations. In addition, it is necessary toconsider the prevention of health problems arising from overwork, mental health care, and pre- andpostpartum health care.

9Environmental
management
systemManagement mechanisms such as ISO14001 that promotes environmental activities. Continuous
improvement is achieved through the PDCA cycle, which is the development, implementation, review,
and maintenance of policies and plans. These systems may include organizational structures,planned activities, responsibility delegation, practices, procedures, processes, and management
resources.

10 Chemical
substances

Chemicals prohibited or required to be reported by laws and regulations.

Minimizing
11 environmental
impactEfforts to reduce air pollution, water discharge, sludge, and waste by monitoring, controlling, andtreatment. These efforts may include reduction of greenhouse gas emissions, energy-saving,biodiversity conservation, water use reduction, waste reduction, efficient use of resources, and thepromotion of environmentally –friendly products and technology development.

12 Environmental
permits

Requirements set by laws and regulations such as the mandatory delegation of a manager forpollution control and obligations to notify the government.

13 Bribery

To offer government officials or others in a similar position, money, goods or entertainment in returnfor business benefits.

14 No improper
advantageTaking advantage of a position as a buyer or contractor, this can include unilaterally determining orchanging the initial terms of an agreement with suppliers or imposing unreasonable requirements orobligations.

Inappropriate
15 benefits

To offer gifts in the form of money, goods or entertainment beyond the scope of what is acceptable
under law or social customs. This includes paying off anti-social forces and insider trading.

16 Fair competition

Anti-competitive activities such as bid rigging to arrange prices between bidders, or forming cartels
where competitors agree upon the price of products, services, product amounts, or sales areas.
In addition, the activities include false indication regarding products of other companies.

17 Intellectualproperty

Intellectual property rights include patent rights, utility model rights, design rights, trademarks,
copyrights, and business secrets, etc. Infringement of the intellectual property rights includes theillegal duplication of copyrighted materials, the illegal acquisition and use of business partner’sinformation, etc.

18 Quality
Management
SystemManagement mechanisms such as ISO9001, which promotes quality management activities.
Continuous improvement is achieved through the PDCA cycle, which is the development,implementation, review, and maintenance of policies and plans. These systems may include
organizational structures, planned activities, responsibility delegation, practices, procedures,processes, and management resources.

19 Data security

Management to defend the company internally and externally from computer network threats such asviruses and spyware.
In addition, regarding information allowing the identification of specific individuals, as well as sensitive
information, data security includes building and operating management mechanisms to prevent suchinformation from being unduly used, disclosed, or leaked.

20 ComplianceTo understand and comply with laws and regulations applicable to your own company.

21 Supply chain

A series of activities and parties involved throughout a production process such as treating raw
materials to delivering final products to end users; i.e. development, procurement, manufacture,distribution, sale, consumption, recycling, etc. An integrated management method of a supply chain iscalled supply chain management.