The Morinaga Group
Supplier Guideline
v.1.0

June 2021
Morinaga & Co., Ltd.

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Contents
Introduction----- 3The Morinaga Group’s Corporate Philosophy----- 3Morinaga Group Procurement Policy----- 4

Supplier Guidelines----- 5

When Choosing New Suppliers----- 8

Request to Business Partners----- 92

Introduction
To put the Morinaga Group’s Corporate Philosophy into practice, the Morinaga Group,
together with our business partners, aims to contribute to the realization of a sustainable
society by establishing a supply chain that carries out good-faith business activities, and byconducting procurement activities with consideration for society, the environment and humanrights, in accordance with the Morinaga Group Procurement Policy. In order to do so, as it isessential for our business partners to understand and cooperate with the Morinaga Group’s
approach, we have now established new Supplier Guidelines that specify in greater detailour expectations and requirements of business partners.
To increase the competitive advantages in the supply chain between our business partners
and the Morinaga Group, and contribute to the development of a sustainable society, we ask
that our suppliers make proactive efforts to comply with the Guidelines.

The Morinaga Group’s Corporate Philosophy
The Morinaga Group’s Corporate Philosophy is composed of Our Mission, Our Visions,and Our Commitments. Our Mission states how the Group will contribute to society, andOur Visions comprise the five visions that we will pursue toward the future.
Our Commitments represent the values that we have developed during more than 100year history since the founding of the Group and will continue to uphold as our firm belief
for many more years to come. To describe the essence of our Corporate Philosophy in
one word, it is “Delicious, Fun, and Healthy.”
Corporate Message
Delicious, Fun, and Healthy
Our Mission (PURPOSE)
The Morinaga Group will continue to create healthy foods that can be enjoyed beyond
generations, thereby bringing smiles to the faces of people around the world now and in
the future. Since its founding in 1899, the Morinaga Group has been consistently
providing customers with new value and inspiration, while responding to changes of thetimes and those in the lifestyles of customers. As a sustainable company that keeps
growing, the Group will continue to make food that contributes to keep people’s mind
and body healthy toward the creation of a sustainable society, where everyone can lead
happy lives. From today to tomorrow and from one generation to the next, we will3

continue to bring smiles to the faces of people around the world.
Our Visions (VISION)
The Morinaga Group has set the following five visions with an eye toward the future.
“Good quality,” “Only-one value,” “Act globally” “Link together,” and “Sustainable society,”
which can be abbreviated as the acronym “GOALS.”The Group will work toward the GOALS hand in hand with all stakeholders, including
customers and employees.

 Good quality Pursue quality with integrity and contribute to the healthy and happy
lives of customers
 Only-one value Create and give new value and inspiration to society
 Act globally Never bow down to adversities and expand the scope and possibilities ofactivities
 Link together Build relations of trust with all stakeholders, including employees
 Sustainable society Contribute to the creation of a sustainable society, thereby
bringing smiles to the faces of more people
Our Commitments (VALUE)

Based on altruism, we will continue to uphold the five commitments.
The Morinaga Group has been sincerely upholding these commitments for more than acentury. Based on the ideal of altruism, which means to be considerate of others andthink about how to contribute to them, we will continue to uphold the following fivecommitments: Give first priority to customers; Be a pioneer; Have an indomitable spirit;
Value ties between people; and Align our business imperatives with social challenges.
-We will take actions, giving first priority to putting smiles on the faces of customers.
-We will boldly embrace the challenge of creating what are needed by society and thenew era.
-We will make progress to achieve our targets, acting in a bright, proactive, andtenacious manner at all times.
-We will value the thoughts of people associated with our business.
-We aim to achieve the creation of a sustainable society, thereby making both ourstakeholders and ourselves smile.
Morinaga Group Procurement Policy
In order to realize food safety and reliability as well as a sustainable society, the Morinaga
Group endeavors to build fair and equitable relationships with our business partners and4

carry out procurement activities that are considerate of society and the environment.
 Compliance/adherence to social norms, etc.
We comply with laws and social norms, etc., carrying out healthy procurement activities
in accordance with the Morinaga Group’s Code of Conduct.
 Product quality/safety assurance
Placing top priority on customers’ safety and peace of mind, we strive to ensure productquality in carrying out our procurement activities.
 Strengthening partnerships
We work together with our business partners with the common goals of “CustomerDelight” and “Customer First,” building relationships that enable mutual expansion.
 Fair and equitable trading
Comprehensively taking into account efforts related to product quality, prices, delivery
deadlines, technological strength, and social/environmental aspects, we undertake fairand equitable trading activities.
 Consideration for human rights/work environment/safety
Based on the Morinaga Group’s human rights policies, we carry out procurement
activities giving consideration to human rights, the work environment, and safety.
 Consideration for the global environment
Based on the Morinaga Group’s environmental policies, we carry out procurement
activities aimed at realizing a sustainable society, giving consideration to the globalenvironment.
Supplier Guidelines
The Morinaga Group considers that the cooperation of the supply chain as a whole is crucial
for the sustainable development of society. We ask our suppliers to understand the objectiveof the Morinaga Group Procurement Policy as well as the objective and content of theGuidelines, and cooperate with and put the Guidelines into practice as the business partners
who make up the supply chain.
1. Compliance with Laws and Regulations and Social Norms
At the same time as complying with the laws and social norms of each country and region,build systems to ensure compliance.
■ Comply with laws and regulations
Comply with international rules, and the laws, ethical and social norms of each country.
■ Eliminate anti-social forces
Eliminate all relationships with anti-social forces.
■ Respect intellectual property rights
Respect and do not infringe the intellectual property rights of third parties.
5■ Prohibition of giving and receiving improper benefits
Do not give or receive improper benefits in relationships with stakeholders.
■ Prohibition of corruption, bribery, etc.
Maintain normal and sound relationships with governments and administrations, etc. and do
not give bribes and illegal political donations or the like.
■ Prevention and early detection of fraud
Implement actions for preventing fraud, and also create systems for early detection of andresponding to fraud. Strive to engage in fair and equitable trading with comprehensive
consideration of quality, price, deadlines, technical ability, and social and environmental
initiatives.
■ Establish information security
Appropriately manage and protect confidential information and personal information andcomply with relevant laws.
2. Assuring Quality and Safety of Products and Services
Strive to thoroughly manage the quality of products and services and enhance product safety
and quality to satisfy the safety standards prescribed by the laws, etc. of each country.
■ Ensure and manage the safety of raw materials, products and services
Check and examine the safety of raw materials, packaging materials, and products, confirm
that the sellers’ quality management is appropriate, and build and operate management
systems. Comply with international rules, and the laws, ethical and social norms of eachcountry.
■ Respond to occurrence of accidents and risk of occurrence
In cases where it is ascertained that an accident has occurred or is liable to occur, while
giving priority to the safety of customers, quickly investigate the causes and the facts andaccurately report them to the Morinaga Group.
■ Stable supply of products
To ensure stable supply of products, prepare and establish a Business Continuity Plan (BCP)
for prompt restoration of operations, even in unforeseen circumstances.
■ Information disclosure
For ensuring safety, provide fair and accurate information disclosure.
3. Fair and Equitable Purchasing in Trading
Comprehensively determine quality, price, reliability, performance, etc. of products andservices, and carry out fair and equitable purchasing in trading.
■ Ensure fair and free competition
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To enable business partners to freely provide products and services, strive to establish
opportunities for fair participation.
■ Prohibition of abuse of dominant bargaining position
Do not engage in actions that unfairly disadvantage business partners by use of a dominantposition. Always act fairly in trading with other companies.
■ Prohibition of giving unfair benefits
Do not give or receive gifts or business entertainment that could be judged to be improper
when viewed by third parties.
4. Respect for Human Rights, and Consideration for the Working Environment and Safety
and Health
Emphasize and respect standards and approaches in relation to international human rights.
■ Ensure employees’ health and workplace safety
Strive to manage and maintain employees’ safety and physical and mental health and ensurea safe working environment.
■ Management of appropriate working hours and payment of appropriate wages
Properly manage employees’ working hours, non-working days and leave in compliance withlegal working hours, and pay appropriate wages that comply with the legal minimum wages.
■ Respect the right to organize
Respect employees’ right to organize as a means for holding discussions between labor andmanagement on matters such as working environment and wage levels.
■ Establish systems for responding to emergencies
Establish and make thorough efforts to publicize systems for responding to anticipatedemergencies such as disasters and accidents that may occur.
5. Contribution to Society and Consideration for the Global Environment
Together with supply chain-related persons, strive to reduce the burden on the environment
toward the realization of a sustainable society.
■ Make effective use of sustainable resources
Use sustainable living things, water, forests, agricultural resources and energy, promotewaste reduction initiatives, and facilitate sustainable use of all kinds of resources.
■ Conserve and reduce the burden on the global environment
Consider the impact on local environments and ecosystems from emissions, waste water,odors, noise, vibrations, light, etc. associated with production, and promote initiatives forenvironmental conservation such as reducing the environmental burden, stopping reductionof forests, and preventing global warming.
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■ Consider biodiversity and ecosystems in procurement of raw materials
In procuring raw materials, check traceability to production areas, understand the status ofbiodiversity and ecosystem conservation in the production areas, and strive to makenecessary improvements.
■ Develop and promote procurement of environmentally-friendly products and services
Strive to develop environmentally-friendly products and services, and choose andpreferentially procure environmentally-friendly products and services in procurement.
■ Promote energy saving and resource saving
Strive to reduce the amount of resources used, reuse resources, and reduce the burden on
the environment.
■ Prevent pollution
Prevent environmental pollution and activities that may lead to damage to human health.
■ Comply with related laws and regulations
Comply thoroughly with the various environmental laws and regulations.
■ Contribute to the local community
Respect the local culture, fulfil their role as a member of the local community, and contributeto the growth and development of society.
* The Morinaga Group Procurement Policy and the Supplier Guidelines have been createdwith reference to, and are compatible with, the Ten Principles of the United Nations GlobalCompact advocated by the Global Compact Network Japan (GCNJ).
When Choosing New Suppliers
When choosing new suppliers, we consider the status of the suppliers’ CSR efforts, including
human rights and labor, prevention of corruption, safety and health, and consideration for theenvironment in addition to quality, cost, and ability to meet deadlines through fair andequitable purchasing activities.
■ General (human rights, compliance, safety and health, information management, etc.)
Respect for basic human rights, compliance with laws, prevention of bribery and corruption,
maintenance of a safe working environment, management of employees’ health, andmanagement of information security.
■ Management policies and financial status
Specification of medium- to long-term management policies, and maintenance of a soundfinancial status.
■ Assessment of technical abilities
Quality control, stable supply, price competitiveness, responding accurately and promptly to8

commitments and required specifications, and establishment of a Business Continuity Plan
(BCP) for disasters.
■ Consideration for the environment
Compliance with environment-related laws, respect for biodiversity, use of sustainable
resources, and provision of environmentally-friendly products and services.
■ Understanding of and cooperation with the Supplier Guidelines
Request to Business Partners
Based on the Supplier Guidelines, please cooperate with the following points:■ Promote activities and initiatives in accordance with the Supplier Guidelines
We ask our suppliers to understand the Morinaga Group’s Corporate Philosophy andProcurement Guidelines and carry out activities that are compatible with our Company’s
initiatives.
■ Share with and make widely known to each supplier that makes up the supply chain
Promote the initiatives, not only within their company, but also to each supplier that makes
up the supply chain.
■ Share with and make widely known to related departments internally
We ask our suppliers to make the initiatives widely known, not only in their own department,
but also in related departments within their company.
■ Cooperate with surveys and monitoring
We ask our suppliers to cooperate with regular surveys or site visits by persons in charge asnecessary. In the event that we become aware of cases of non-conformance with theGuidelines, we will ask for improvement and, as necessary, provide support for resolving thematter.

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